Here’s How Millennials Have Changed the Face of the Real Estate Market
July 19, 2021
Back in 2017, the Chief Economist and Senior Vice President of Research at the National Association of Realtors had predicted that millennial buyers are the generation most likely to view a house purchase as a good financial investment.
Today, as everyone is trying to recover from the setback caused by the COVID-19 pandemic, the real estate market is seeing a surge in home buying amongst the millennial generation, with Americans in their late 20s and early 30s having a higher homeownership rate than any other age group in the country.
And, this trend is predicted to continue for the next few years. According to Stuart Eisenberg, BDO USA, “Expect more disruption in the next five years as millennial home buying rises.”
This huge generational shift in home buying has brought with it a lot of changes to the way things were done in the past. What changes have millennials brought to the real estate market? We are going to discuss all of this and a lot more in this blog post.
Use of Technology
The millennial generation is more tech-savvy than any of the generations from the past. From searching properties to gathering information about the real estate market, millennials use technology extensively. Here’s a look at some of the technological changes that the millennial generation has inspired in the real estate market:
1) Millennials use online searches a lot more
Almost half of all the searches for a property by first time home buyers are done online.
Instead of going to a real estate agent directly for finding information about the market, people now prefer to do their research online. This has made it imperative for real estate professionals to keep up with the times and build their online presence.
2) Millennials use texts instead of phone calls
Text messaging is the most preferred choice for communication of the millennial generation. Instead of using phone calls for scheduling appointments and asking for information, millennials prefer using text messages and emails.
3) Millennials prefer live streaming and videos
Another major trend in the real estate market that has been driven by technology is the preference of videos and live streaming for viewing a property. The millennial generation prefers to go through house viewings via zoom calls instead of visiting the location physically first.
Location and Home Types
Another major trend that the millennial generation is changing in the real estate market is the preference of location and types of homes. Here’s how:
1) Suburbs vs Big Cities
Instead of living in big cities, millennials are more inclined to move to the suburbs where they can get bigger, more comfortable housing options. According to Zillow reports, nearly 50% of millennials would choose to live in a suburb rather than a big city.
2) Bigger homes vs Starter Homes
The millennial generation is driven by luxurious choices, and this is reflected in their choice of houses as well. They prefer buying bigger houses where they can stay for a long time, even if it means they have to pay more.
3) Move-in vs fixer-upper
Less hassle, more comfort. The millennial generation thrives on this mantra. Instead of settling for a fixer-upper, millennials are more inclined to buy move-in-ready properties, since it is less of a hassle.
4) Greener, More Energy-Efficient Homes
Having energy-efficient equipment at home is not just a means to reduce monthly expenses, like heating and cooling, but it also is a way to protect the environment. Being a more aware generation, millennials are more attracted towards energy-efficient properties.
The Change Is For The Good
In the past, millennials have made a huge impact on the real estate market. This impact has brought with it several positive changes. For instance, the reliance on technology has made every aspect of home buying a lot more streamlined and transparent. Similarly, the movement of millennials towards the suburbs can also be looked upon as one of the ways to balance the massive increase in housing prices in urban areas.
If you too want to be part of this change and buy your first home, then get in touch with a Negotiator Recognized Partner (NRP). From negotiating on your behalf to ensuring that you get the best deal for your dream home, an NRP will do it all. So, what are you waiting for? Get in touch with an NRP and make your dream of buying your first home come true!