14 Jun What Do Millennials Want in a New Home?
Posted at 09:15h in Demographics
Millennials buying homes now are different from the group that will be entering the market in the next 15 years. Also known as Generation Y or the Echo Boomers, this group numbers 80.8 million, according to the U.S. Census Bureau. The Bureau actually estimates that Millennials could number 92.9 million by 2025.
Millennials are challenging for homebuilders because they’re so hard to define. Ranging from teenagers to those in their early 30s, some desire a hip, urban lifestyle while others are looking for a more traditional home in which to raise a family. In short, there is no typical buyer profile for this generation.
The younger segment of this generation is more attracted to rental housing than for-sale housing, partly because of youth and partly because mortgage financing is so difficult to obtain. However, the married-with-children segment is the most likely to buy townhomes or detached homes; this group really doesn’t want a suburban existence like their Boomer parents. They desire a neighborhood with walkability, authenticity, informal layouts, and functional space.
But in some ways, Millennials and Baby Boomers are alike: they are both at life stages and value community for social interaction.
So What’s Most Important to This Spectrum of Buyers?
Home features must include:
- Clean, simple design that maximizes square footage
- Low-maintenance materials and minimal lawn care
- Open floor plans that “flex” for multiple uses
- Small but usable outdoor spaces
- Ample storageUp-to-date home technology (full broadband or wireless connectivity,charging stations for electric cars, etc.)
- Sustainable materials and energy-efficient systems and appliances
Preferred community features include:
- Walking distance to mass transit, shopping, dining
- Fitness centers
- Entertainment rooms
- Nearby parks
- Walking and biking paths
Millennials are just beginning to have an impact on the housing market, but their time is coming.