Forget Avocado Toast; Millennials are Shopping for Homes
11 Jan 2022
5 min read
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In some ways, millennials are still imagined to be the college-going, brunching, unbothered youths of yesteryear. However, the reality is that millennials make up 66% of first-time homebuyers, and roughly 34% of the home buying market overall.
Marrying, having children, and working on their careers—it seems that the kids have all grown up.
It’s no surprise, then, that home selling has shifted to accommodate millennials’ wish lists and housing needs. From marketing properties to this demographic, to renovating and flipping homes that check specific boxes, it’s pivotal for any investor and seller to find ways to attract and successfully sell to millennials. In 2017, 85% of home buyers bought previously owned homes, the single-family home being the most common purchase.However, the majority of home buyers under the age of 37 who bought new homes did so to avoid renovations and pour money into unforeseen problems.
If you are a fix-and-flip investor, you’ll want to target millennials by scooping up and updating properties that reflect modern day trends and this population’s needs.
What are the trends?
Updated kitchen and bathroom: While most millennials have limited budgets, they still have visions of what their ideal home would look like. Replacing fixtures or refurbishing cabinets are quick, cost-effective ways to recreate important spaces like bathrooms and kitchens.
Open floor plan: Open floor layouts have yet to go out of style, and it’s no surprise as to why. Kitchens flowing into living rooms flowing into dining areas create more space to entertain and keeps the family together during mealtime prepping. Creating a property that reflects these social needs is more likely to sell quickly.
Centralized location: Location, location, location!Proximity to work, public transportation, and local businesses are usually key indicators in how well or quickly a property will sell among millennials. A community’s walkability and quality of life offerings are serious considerations for these home buyers.
Low maintenance living: Life has only gotten busier over the years and while the weekends are often left for chores, no one wants to spend the entirety of their days off doing only chores. Properties that include attractive but low-upkeep features are more likely to attract millennials.If anything, this makes it easier for investors who are flipping properties.While, yes, style and modernization are important for any property, ultimately, any opportunity to blend the two with cost-effective, low maintenance changes can benefit both investor and potential buyer.
Home office space: Grand sized homes aren’t typically what millennials are after, however, the need for professional space is typically a desired feature. As workplaces have shifted to more remote work, particularly during the COVID pandemic, millennials have recognized the importance of having quiet, private space dedicated to work. If there are enough rooms to work with, it’s probably advisable to turn one into a home office space when conducting tours or marketing the property online.
Four-legged family members: Pets are a big part of millennial families, and for many who have dogs, that means being either near parks or having yard space, even if it’s small.
Technology: While no one is exactly hungry for a Jetsons style home, some level of tech savviness within a home is important to millennials. Whether that means smart thermostats, security systems, or solar powered panels, these features are often viewed as important and are filed under the “pros” list.
How Do I Market to Millennials?
Online presence is key:Quality photos, detailed descriptions, and virtual tours are critically important for any house to gain traction with potential buyers—even more so during the pandemic. Homebuyers are more likely to find their property online, and if interested, will proceed with an in-person tour. Spending time—and some money—to digitally elevate a property’s appeal will more likely result in interested millennial buyers.
Stage the property: Staging not only comes in handy for digital marketing, but also for house tours. For example, ff a property has the space for an office, stage the room as an office! Millennials are typically drawn to minimalist, sleek, and clean aesthetics. If a property is nicely renovated but is staged to look like grandma’s house, it is likely to be forgettable.
Trends come and go with every generation that house hunts.It’s important to remember that at the end of the day, millennials seek the same thing previous generations have sought before them: an affordable house that caters to their needs and can easily be made to feel like home.