One of the most effective ways to sell competitively in today’s market is to know how to market to millennial home buyers. According to a report from the National Association of Realtors, more than a third of all home purchases in 2017 and 2018 were made by millennials, making them the most active generation of home buyers for five consecutive years.
Current millennial home buying trends
Whether you’re a real estate agent, an investor, or a home seller, you will need to stay on top of the latest millennial home buying trends in order to succeed.
Here are several key highlights from the National Association of Realtors Generational Trends report from 2018:
- Importance of online presence – Majority of home buyers start their search for a home online, with nine out of ten buyers considering photos of a home as the most important feature in in an online listing.
- Financing is still a necessity – 88% of all buyers financed their home purchase, increasing to 98% when considering buyers under the age of 37. Most buyers used their savings towards a down payment, majority of which consisted of millennials, while older generations used proceeds from previous sales.
- Previously owned homes are preferred – In 2017, 85% of buyers bought previously owned homes, while the rest bought new homes. Single-family homes were the most common type of home purchased. Majority of buyers under age 37 bought new homes in order to avoid dealing with existing problems and making renovations.
What are millennials looking for in a home?
Selling a home to millennials can be challenging as they have specific demands and preferences that differentiate them from home buyers of other generations. Here are some of what they consider “must-have” features:
- Open floor plans – Formal dining rooms used to be a popular feature, but most millennials prefer open concept floor plans where the living areas, dining room, and kitchen are combined into an expansive, seamless space.
- Home office – More and more millennial employees are working remotely every year, making home offices an essential feature.
- Updated kitchens and bathrooms – For budget-conscious millennial home buyers, kitchens and bathrooms with brand new fixtures are a must. Most millennials have limited budgets, which is why they use most of their savings towards a down payment and furniture, instead of updates.
- Low-maintenance amenities – Today’s buyers prefer to spend weekends and their free time doing other activities rather than chores and completing to-do lists. Low-maintenance/low-upkeep features are a huge selling point.
- Proximity and ease of access – Whether it’s due to heavy traffic, high gas prices, or the increasing desire to “go green,” young buyers tend to be more selective when choosing a location. Walkability and close proximity to transportation options are considered important factors.
- Energy efficiency – Energy efficient homes are great for millennials, as it satisfies their environment consciousness while also helping them stay within budget.