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This Old House - Do-it-Yourself

6 Millennial Trends Reshaping the Real Estate Industry

Written by Posted On Sunday, 30 September 2018 19:24

Oh, Millennials- the demographic associated with brunch, avocado toast, and the infamous quarter-life crises. Even if they're laden with student loan debt, liberal arts degrees, and dating apps, Millennials represent a group of nearly 80 million progressive and dynamic thinkers.

They aren't afraid to change the status quo and aren't afraid to find better solutions for ongoing problems. 

Millennials take the heat for killing dozens of industries  and ideas, ranging from breakfast cereal to Applebees to bars of soap and diamonds, but economists are increasingly shifting their focus into understanding how young adults make one of the largest decisions of their lives: where and how they live. 

The real estate industry naturally has its ebbs and flows (and it always will), but youth appear to be reshifting and reshaping the way everyone is buying a home. Let's get into the top trends!

Location, Location, Location (Still Reigns Supreme) 

Millennials, on average, work a lot. As in, the majority of American millennials clock in 45 hours at the office each week. That's before taking phone calls, email, travel, and constant Internet connection into consideration. Today, work represents a 24/7 commitment, and many employers expect their employees to be "on call" and ready to perform at any given moment. Even though they may carry a reputation for being lazy and unproductive, your average twenty or thirty-something is hustling hard to bring food on the table.

With that said, Millennials value their work lives, and they also value their work-life balances. As a result, many of them want convenient commutes (whenever possible). One of the top priorities in real estate is proximity to the workplace. And, yes, they care about the surrounding details: good schools, parks, walkable restaurants.  Location matters- but the location to the office may matter most of all. 

Finally, it should be noted that Millennials, despite their supposed urban tendencies, still flock towards the suburbs instead of small towns or major cities. Even though they may clock in more hours at work, they want to spend time outdoors during their free time. 

The Home Office Trend

Millennials are increasingly valuing the lucrative benefits associated with a home office. In fact, research shows that over half of the American workforce will be freelancing, in some capacity, within the next decade. Thus, it's vital for many potential buyers to consider a designated space for their work needs.

Home offices, in general, have a vast appeal, and this is especially true as we become more and more mobile. With so many young people now having the option to telecommute or completely work from home, having this space becomes a necessary piece of the real estate puzzle.

Fido Matters

Do you consider your furry friend your child? If so, you're not alone.

As Millennials are waiting longer to start families than previous generations, many of them start out their home lives with pets. In fact, a recent study found that nearly a third of homeowners reported that their pets influenced their home-owning decisions.

For a long time, one's perception of having children ranked as the top priority. However, we're now seeing that Millennials consider breed restrictions, pet fees, and yard space for their animals to play. And many young adults also value the added dog amenities (cameras, doggy front doors, and washing stations).

The Less Lawn, The Better

Back in the day, mowing the lawn and maintaining the yard used to represent a sort of All-American pride. Today, Millennials represent a large sector of people who simply want nothing to do with watering, weeding, or gardening. In other words, they don't want the large lot. They don't want all the grass and flowers. And they don't want to have to mow the lawn at the crack of dawn on Saturday morning.

In other words, the more low-maintenance, the better. 

Give them a small patio with succulent pots and some fake grass- and you'll have yourself a happy set of homeowners.

Ready-to-Go Homes 

Starter homes are becoming a thing of the past. And most MIllennials simply don't have the time, money, or mental capacity to invest in a fixer-upper property. Instead, most young homebuyers are willing to wait for the perfect home before taking the financial plunge. As many of them have been renting for nearly a decade before purchasing their first property, it's not uncommon to be willing to wait a few more months or years before landing the right fit.

In other words, most Millennials don't want to purchase a home that needs excessive remodels or renovations. That's why we're seeing a dynamic surge of new designs, like proto homes homes , where individuals can design and purchase the exact house of their dreams.

Modern, ready-to-go, designed homes make for a convenient and enjoyable choice for many new homebuyers. 

Technology Everywhere

No, Millennials don't care about having a landline or telephone jack. In fact, most of them don't even care about having cable television. However, Millennials do care about cell phone connection and Internet service providers. In other words, they care about how they're going to check email, stream Netflix, and browse Facebook.

In fact, these facets are so important that many potential homebuyers inquire about them during their first home visit. The inability to generate excellent reception can make a dream house turn into a hard no- very quickly.

Final Thoughts on Millennial Real Estate Trends

Today, Millennials represent the largest segment of homebuyers in the country. As we continue to understand the needs of our society's youth, we will continue to rethink how we design, buy, and invest in property.

 

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