How The Housing Market is Affected by Millennials
Wednesday May 22nd, 2019
Every generation has their own unique way of thinking, particularly when it comes to home buying. Millennials are the largest generation in Canadian history and are approaching many key milestones; buying a home is one of them. Their preferences and attitude towards home buying offers some insight on how this will ultimately affect the Real Estate market in general.
As many of you probably know, Millennials check multiple online reviews when they want to purchase a toothbrush, so imagine the amount of extensive research that will go into home buying.
They are extremely tech-savvy and will look to purchase a home online more than any other age group. Over half of Millennials in North America found their home online. (Source: Visual Capitalist)
What Entices Millennials?
- If it’s aesthetically pleasing, it’s likely to grab the attention of a millennial. They are more prone to drive by a home or do a walkthrough after viewing a listing if they connected with the aesthetics and staging of a home and how it’s displayed in an ad.
- A Real Estate Agent plays a significant role during the buying process, and most Millennials rely on the professional expertise of a realtor who will simplify the home buying process. They are also more likely to work with a realtor than any other age group.
- They are the least likely out of all the age groups to make their first home purchase their last. As many of them are first-time home buyers, their goal is to upgrade to a better home as they will likely outgrow the first and it will no longer fit their needs. It is merely a stepping stone that will ultimately lead them to the house of their dreams.
- Millennials are fueled by instant gratification and would ideally choose a move-in ready home over a fixer upper. They do not want to spend the time, energy, or money to renovate and lean more towards purchasing a newly constructed home.
- However, even in a temporary home, Millennials still expect to live amongst state-of-the-art features. Since most of their time is spent in the kitchen, they would ideally prefer an open concept kitchen in order to still entertain and move freely to other parts of the house. Going back to the notion that Millennials do not want to have to deal with repairs, they also tend to favor brand new and modern appliances.
- Millennials are big proponents of conserving the environment and are usually looking for energy efficient alternatives. Green features are very alluring to many of them, so much so that they are willing to pay out of pocket to upgrade to such features.
- Working from home has become the new norm. Careers are getting more creative and there is less and less need to work from an office. That said, Millennials require a comfortable work space in their home, and whether or not the home they’re looking for has a substantial work space could be a deciding factor. If they do have an office job, they will opt for a home that’s close to work in order to save time on the road and money on gas.
Where Do Millennials Prefer to Live?
While they absolutely love to spend their time in the city, a lot of them would prefer to own a home near, and not actually in, the city. Not only is It less expensive, but they value the privacy and peacefulness that the suburban communities offer.
At the end of the day, the attitude, motives and actions of Millennials towards home buying cause a major effect on the Real Estate industry. While other generations also share some of the ideals held by Millennials, they are the ones that have the most significant impact on the industry simply due to their growing impact on the market.