Are Millennials Helping Shape the Housing Market?
Millennials are changing housing market trends and shaping the situation to fit their needs and ideals. Rather than driving around looking for for-sale signs, many millennials find the home they desire easily online. Although some are still debating between renting or buying a home, those who have decided to purchase a house in recent years have helped make the market what it is today. Here’s how.
Student Loans Delay Buying
Many millennials attended college thanks to student loans and assistance. This meant having hefty student loans to pay off before even considering purchasing a house. With these expenses and more, more people were staying at their parents’ homes or renting with roommates rather than buying.
While you used to see people buying homes at early ages, people now tend to wait until well into their 20s or even 30s before buying for the first time. Income is also a factor, with most millennials saying they didn’t make what they needed to buy until recently.
Technology Turns the Tide for Home-Buying Ease
Before the internet age, you had to physically view a house before purchasing it. Now, you can make your decision to buy without even needing to step inside if you don’t want to. Millennials have used technology to their advantage, changing how homes are bought and making it easier to handle the whole process.
Even if you visit a prospective home, most of the home-buying process can be handled with technology. Reach out to real estate agents, text them your questions, view homes and photos, and get the information you need all from your phone, tablet, or computer. Many sellers even add 3D virtual tours so buyers can get a complete home walkthrough.
Mortgages are even available online, making it easier to apply than ever before. You can enter your information online and receive your pre-approval rates quickly. It can also be done on multiple sites, allowing you to shop around for the best option and most affordable interest rate.
Must-Have Features Most Millennials Look For in a Home
Of course, everyone has their tastes and set of preferences when it comes to purchasing—and living in— a home. However, there are some common must-have features that many millennials are looking for. New construction is the most sought-after. People often prefer knowing the place is entirely new and therefore less likely to require repairs or replacements so soon. It will save them on spending and ensure things last for a good duration.
Energy efficiency is also a big plus. Millennials want green features in their homes that ensure they’ll save on costs while benefiting the environment. Solar panels, efficient housing materials, and appliances that use less energy are on the list of wants. Many prefer if new appliances are already in place, so they don’t have to spend a fortune on them soon after their home purchase.
Nearly half of recent millennial home buyers say they want the kitchen to be the focal point. It’s a prime hangout spot and should therefore be spacious and accommodating. An overall open-floor plan throughout the entire home is also ideal.
With so many people working from home, office space is also on the list of must-haves. Having a dedicated workspace can do a lot for productivity. With technology-focused options in the house as well, such as smart home thermostats and other features that can be operated from your device, it makes it even easier to handle job duties from the comfort of your own house.
Sought-After Homes and Communities for Millennials
Millennials are seeking homes and communities near their jobs. Most don’t want to waste gas on long drives, not to mention the extra time it takes out of their day to commute. Many prefer positions close to home and therefore purchase places near where they work. Some of the hottest markets right now are also in smaller cities and suburbs rather than large cities overcrowded with people. Millennials may not want to live in the city, but they want to be close enough to it to get there when they desire. A home in a suburb outside of city limits but still within close driving distance is key.
In many cases, the homes most sought after are those with room to grow. Because millennials have waited longer than previous generations to buy, they aren’t just trying to find their first small starter home. They’re hoping to select a home that will allow them to grow their family and stay in one spot for years to come. Many prefer modern, spacious homes with all the amenities. Those who think they’ll move again typically want to stay in their home for at least five or six years, giving them a chance to pay down some of their mortgage and have the potential to sell for a worthwhile down payment on the next one.
Now that millennials are changing housing market trends, it’s safe to say these new methods for purchasing a home are here to stick around for a while. Contact us at Offercity to learn more about the housing market and options in your area or elsewhere. We’re here to guide you whether you’re buying or selling.