We have had the opportunity
to work with many of the Millenials in the last few years, typically finding
them their first home. In the Durango Area, they want in-town
homes with close proximity for walking and riding their bikes to the amenities
that we have in town. The size of the home is not as important as the
location, and the ability to experience life. They tend to want a
greater degree of cultural and ethnic diversity.
One of the things we have
found noteworthy concerning the Millenial generation is the size of it.
There are nearly 83 million Millenials, which is greater than the number of
baby boomers, which is now 77 million, and at the peak it was a population of
80 million. The Millennial generation has received a lot of attention in
the past handful of years. From the workforce to marketing strategies, much may
be said about this generation. Typically, the term refers to those born between
1977 and 1995. This “Gen Y” generation ranges between ages 19 and 37.
In order to understand the
context in real estate, we must first understand the characteristics typical of
the Millennials. As a broad generalization, the Millennials view work and life
differently than previous generations. They seek an overarching purpose in
their lives, and will typically work for different companies throughout their
careers as opposed to working for one company for 30 years.
Additionally, Millennials
focus on a work/life balance. They are also dependent on technology. This
combination creates an ability to work from any location. With internet and
cell phone capabilities, Millennials must be responsive at all times. This
creates both autonomy and connection to employers.
So how do these
characteristics of Millennials impact real estate? The influx of Millennial
buyers creates a need for sellers to market and stage homes with this
demographic in mind.
According to a study
conducted for Better Homes and Gardens Real Estate, the Millennials focus on
technology in homes, as is demonstrated by the tendency to want custom homes
and home theaters, as well as security systems. Millennials seek homes
compatible with the ability to work from home, and find great value in home
offices.
The Millennials prioritize
socialization. As such, the location of homes remains very key for them. They
tend to want to be near the experiences they enjoy, and want their homes to
reflect the emphasis they place on their social lives. They like the ability to
walk to necessities and entertainment—not the need to drive into the suburbs to
retreat. Even if a home’s location is further from the center of a city, noting
walkable features in the area can assist in appealing to this generation.
Millennials also seek custom
homes. Instead of the “cookie cutter” models sought by previous generations,
this generation wants unique homes. This may be found by incorporating hardwood
floors, or adding one bold painted wall in a room. They also seek homes that
are energy efficient and green. These modifications are oftentimes
inexpensive and create substantial impact.
These concepts apply to
sellers, as many Baby Boomers will be selling their homes to a younger
generation. While changing a home’s characteristics completely will be
impossible, small enhancements could be considered. As the market shifts and
the Millennials maintain a larger presence seeking home ownership, we will be
strategic to consider their tendencies as we market homes and assist them in
purchasing their dream homes.
Please refer to the below
links as sources for further information:
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