According to news reports by Inc., millennials form more than 66% of the first-time homeowners' crowd. This generation is very heavy on the use of technology, changing and reshaping the world of real estate housing and sales.
Read this article to understand how millennials are changing the real estate market and what you can do about it. Since the millennials form such a big chunk of the potential buyer, property managers and owners need to take pay heed to these rising trends. You need to start revamping your business based on these new trends to tap into this market and increase your sales.
The Millennial homebuyers are on the rise
Research by The Ascent says millennials accounted for more than 37% of the homebuying population in 2020. This figure is way higher than any other generation when baby boomers lay at a close second of holding 32% of the market. Gen Z owns only 24% of the total homes. Zillow and United States Census Bureau conducted a collaborative study that said most millennials would have been in their 40s in 2020, an ideal homebuying age.
The past two years of the pandemic has helped the millennial crowd save up on their salaries. Most did not spend on commuting to work or outdoor activities. This has made them a has a high potential for buying homes. The Zillow research reports came true and showed in their reports in 2021, which said that more than half the homeowners in the past year were below 40, and the median age was only 36.
Ways in which Millennials are changing the market
The use of technology is one of the most significant changes that millennials are bringing into the real estate business. But many other changes are making the rounds. Here are the top few you cannot afford to ignore.
They do extensive research before buying
Most millennials are tech-savvy, and they do their due research on online platforms. More than 97% of home buyers start their house search on online platforms. National Association of Realtors (NAR) reports say that 78% of them used mobile to do the research. Among these millennials had double mobile usage to do research and make decisions about their future homes.
They want homes with smart technology
Builder Online news reports have surveyed and have found that 86% of millennials are ready to pay extra for smart homes. More than 20% of them are ready to pay extra on their monthly rent if they get a good smart home. When you provide smart appliances, it helps reduce their work effort in between hectic work life and lets their whole home be connected to their phones. Many people already have one or two smart devices in their homes, but the millennial population is looking for a complete smart home in the coming years.
With smart security, smart appliances, and voice commands, the possibilities of a smart home are endless. As property managers, you can think of installing these smart techs into your real estate units to make use of the 20% extra that millennials are ready to pay for these services.
Millennials are looking for sustainable real estate
Millennials have now become extremely conscious about the environment around them. World leaders and organizations across the globe are questioning the carbon footprint that humans leave and the future. Survey says more than 83% of millennials consider this matter and are looking for sustainable green housing when they make purchases. From the usage of sustainable materials in construction to energy-efficient home products, the millennials use it all to do their part for the environment.
To stay on top of this trend, you can conduct energy audits with neutral third-party auditors on your real estate properties. At Assetsoft, we have a team of expert energy auditors who use the best technology to help you save more energy. Our team will also analyze and find usable data to help you achieve the Energy Star certificate for all your appliances and reduce energy loss.
Millennials are expecting a complete digital home buying plan
PR Newswire report says that more than 40% of millennial homebuyers are comfortable with buying homes online. From e-signatures to e-contracts, proper selection of technology in project management has helped smoothen this process. The reports also believe that more than 80% of millennial homebuyers look for a virtual tour and digital plans of properties before purchasing.
The affordability of homes is crucial
A major factor affecting the millennial home buying trends is affordability. As many of them do not have to stay near work anymore due to the rise of remote work culture, millennials are now prioritizing amenities before location. This has severely changed the real estate market as many millennials now do not mind staying in the suburbs and shifting out of the cities to get bigger and better homes at affordable prices. National Bureau of Economic Research (NBER) research believes that remote work is here to stay, and people will reduce spending on big-city housing by at least 5 - 10% on average.
What’s different between the millennials & boomers
The home buying and renting trends in millennials and boomers are very different. Boomers are now in all probability investing in their second homes, while millennials still form the majority of the first homebuyer group. Millennials also have shifted their needs to smaller homes and lower price budgets. PR Newswire survey believes that on average, when a boomer looks for a 1900 sq ft space, at the same time, a millennial looks for a 1700 sq ft space to buy or rent. Money plays a factor, but small family sizes and questions of more energy expenditure on heating and cooling a bigger place play a factor.
In recent years and especially after the pandemic, the real estate market has constantly changed. Millennials are now playing a significant part in driving this change. But the correct selection of technology to manage your projects management can help you rightly handle this change.
The Assetsoft team can help you plan virtual tours with autonomous drones or improve customer interactions with UiPath made RPA chatbots. We will help you find the best PropTech in the market to scale growth.
Talk to us soon for more!