What millennials want in a home and why does this matter to you? Because they are buyers! According to a survey from Redfin, 92% who don't own a home want to own a home in the future and potentially that means 80 million home buyers in the United States alone! Jonathan Smoke, chief economist of Realtor.com estimates that there 87 million millennials in the United States compared to 75 million boomers!
Millennials will be shaping the housing and mortgage industries with their needs and wants in a home. Where do they live now and why does this matter? It's important to understand where they are coming from and what influences them. They like to be in the thick of things, where the action is. They love their amenities and want to be close to everything they need. They want to be near work, transportation, their favorite coffee shops, restaurants and bars. Most of them live in the city and are paying high rents and also indulging in all the city offers them. What does this mean to you? This means that because of this that they will not have large down payments and yes you can buy a home today with as little as 3% down.
According to survey by the NAHB (National Association of Home Builders), millennials are looking for the following in a home:
55% want a separate laundry room
Storage: linen closets, garage storage, walk-in pantry
Energy efficiency, said they are willing to pay 2-3% more for energy efficiency as long as they see a return on the power bills
The survey also found that they are not willing to sacrifice on less expensive materials in their home but they would sacrifice a longer way to work and extra finished space. Other surveys found that they are not fans of a separate living or dining room. They prefer turn the existing dining room into a home office and the living room into a home theater. They want to "live" in their rooms as opposed to using them for that special occasion. Millennials are also interested in good wireless service, hardwood floors and color! Gone are the days of off white and white!
Good news here is that millennials believe in home ownership! They may go about it differently than their parents, meaning they will search online first. This means they will map it out and know how close they are to the T or to Starbucks. They also know what they will and will not sacrifice on in their choice of home and it's location.
So, if you are a seller in today's market and looking to appeal to these buyers, then you should know your competition because these buyers know what they want. So, if your neighbor has an updated kitchen and baths and yours are not this will affect your sales price as well as your pool of buyers. Also, be aware that these buyer may not be coming in with big down payments but if they are working with a reputable lender or bank and they have a pre-approval in hand then they are good qualified buyers that can afford your home.
sources: realtor.mag, marketwatch.com, forbes.com