What Do Millennials Want In A Home?
If you work with first-time homebuyers, the likelihood is that you will work with Millennials. What is a millennial? They are the largest generation in history and the largest cohort of American homebuyers. You must comprehend the Millennial demographic as a real estate professional. This article delves into questions such as Who are Millennials? What factors influence their way of life? What are their aspirations and constraints in terms of homeownership?
Who Are Millennials?
Millennials are defined by the United States Census Bureau as those born between 1982 and 1996. The following are six facts regarding the Millennial generation that you should be aware of:
There are many: According to the US Census Bureau, there are around 83.1 million Millennials, or more than one-fourth of the nation's population. Around 2010, the Millennial generation surpassed the Baby Boomers.
They are diverse: The latest diversity estimates were completed in July 2014. According to the US Census Bureau, 44% of Millennials identified as minorities: 20% Hispanic, 16% African American, 6% Asian, and 3% mixed race or other.
They are in debt: While this generation is still young, many members joined the workforce during a recession. In the United States, the median salary for Millennials with year round, full time employment is $37,883. The average Millennial owes somewhere in the neighborhood of $38,000 in debt. The average student has credit card and other sorts of debt totaling approximately $14,700. This complicates the process of purchasing property for Millennials.
They are smart: One third of older millennials (now in their 30s) have received at least a four year college degree, making them the most educated generation of young adults in American history.
They rely heavily on technology: Over 87% of Millennials in the United States own smartphones, and 73% believe that losing their phone or computer would have a greater negative impact on their daily routine than losing their car. Makes sense considering many of our daily regime involves the need to use a phone.
They don’t get married early: In the United States, only 26% of millennials are married, compared to 36% of Generation X, 48% of Baby Boomers, and 64% of the Silent Generation at the same age. According to the Pew Research Center, 33% have delayed marriage or childbirth owing to the recession.
Trends & Preferences
The demographic trends in this crucial group are obvious. While Millennials are in debt, they have lofty expectations. Millennial homebuyers desire apartments that are both functional and energy efficient. They are not interested in enormous, grandiose suburban homes, preferring something compact, adaptable, individualized, and conveniently located near restaurants, shopping, and recreational space. They are seeking a real estate agent who provides exceptional customer service first and foremost. Additionally, they anticipate communicating with you by text, email, and social media.
Therefore, who are the Millennials? They are qualitatively distinct from the generations that preceded them. Millennials are more varied in terms of race, education, and technology use, less likely to be married, and less likely to have children—but they are also more likely to be in massive debt. Additionally, they anticipate receiving superior customer care throughout the homebuying process. Understanding the Millennial generation's qualities, goals, and limits is the first step toward success with Millennial real estate clients.