Contrary to popular belief, millennials do not prefer renting over owning a house. This ambivalence of buying real property is mainly due to the fact the majority of the millennials are stuck with debt brought by the change in the economic tide back in 2008.
However, as millennials grow older, have families, and can pay off most of their debts, they are now seen as the fastest-growing potential homebuyers in the real estate industry. According to Realtor.com, as a group, millennials will surpass Generation X and Baby Boomers combined in terms of share in mortgage originations by 50 percent.
Every generation has preferred housing features-millennials are no different. While boomers prefer full bath and one-story homes, millennial homebuyers do not. Some millennials are even selling inherited houses for fast cash.
As the older generations are downsizing and millennials are buying their first homes, the realty industry has to cater to the needs of these young potential buyers who will dominate the real estate market for more years to come. Thus, here are five top features that millennials are looking for in their new homes.
Location and Lifestyle
As millennials are now becoming parents and are raising families, they are now keener in seeking affordable housing and family-friendly lifestyles. Center to what millennials prefer is the sense of community in the neighborhood of their new home. The growing hipsturbia trend offers this need for millennials.
While preferring a suburban-vibe around the neighborhood, millennials want a housing location that offers a convenient walking distance to restaurants, shopping centers, parks, fitness facilities, and major transportation. A convenient location that is close to work is also ideal.
Tech-Savvy and Energy Efficient Homes
While baby boomers look at housing as a status symbol, millennial homebuyers picture homeownership as an avenue to show their personality. For millennials, it is important to build a home that is sustainable and has a less negative environmental impact.
Noted as the first generation to have spent their formative years on technological advances and the internet, millennials are more trusting than older generations in smart home technologies. Smart home features such as low-E windows, LED lights, and solar panels, not only are energy efficient, but they also help in getting the best home insurance rates.
Access to Outdoor Leisure
Another top-selling feature for millennial homebuyers are open spaces-we are talking about terraces, decks, gardens, and pools. Millennials value greater access to green spaces in their homes. Growing plants is more than caring for the environment, but it is a way for millennials to deal with their mental health.
Besides the fact that millennials care a lot for the environment, they wanted to maximize the potential of every square footage of their homes. Millennials do not only want to use these open spaces for gardening but also for cooking, relaxation, and entertainment.
Millennial homebuyers tend to blur the lines between outdoor and indoor living spaces. Having a spacious outdoor area in their homes gives millennials an area where they could socialize and entertain their friends, whether it is for a fun-filled Friday night barbecue or a quiet Sunday morning coffee with avocado toast.
Millions of Americans are working from home. A majority of this number are millennials. Apart from a house that is spacious and environmentally sustainable, millennials are looking for houses that have a dedicated office space for working.
Similar to what millennials want in an office setup, a well-ventilated, naturally lighted room is a must. Apart from being a noise-free area, millennials prefer a workspace that offers a closer view of the landscape outside. Not only do millennials want to see greeneries while they are relaxing, but they also do when they are intensely focused on work.
Spacious Floor Plan
For millennials, the ideal house has a spacious and open floor plan. They want an open kitchen area that flows seamlessly into the dining and living spaces. Such arrangements allow millennials to have a flexible movement as they entertain their friends and family, thus answering the need of the millennials for a deeper communal relationship.
Furthermore, open floor plans allow millennials to flex and morph their homes as the needs of the growing family changes over time. On top of that, an open floor plan also gives an illusion that a room is larger than it actually is.
It is worth noting as well that these young potential homeowners prefer smaller houses. A smaller house with a spacious floor plan means fewer upkeep expenses. Moreover, for millennials, less is more. Compared with their Boomer or Gen X parents, millennials put more value on the quality of their home spaces. This means they opt for maximizing as much as possible the use of these spaces while maintaining the work-live-play setup they prefer.