With the cost of real estate skyrocketing on a yearly basis, its no wonder that many millennials simply cannot afford to buy big homes as their parents did. Not only is this generation opting for smaller homes, but they are also changing the traditional concepts of how to live.
Here are the top five Millennial real estate trends as presented by OnsiteProperty.com:
1. Customized multifunctional spaces
Millennials are practical, and low maintenance when it comes to real estate. One practical concept that is fast becoming a trend for millennials is the creation of customized spaces that are creatively designed to serve different purposes.
For example, millennials often create multifunctional zones in their homes. By simply moving the furniture around, this zone can be used to study, work, sleep, and play. This concept has led to better use of smaller spaces with less furniture.
2. Open to renovating
As mentioned, millennials do not usually have very big budgets. But they are innovative, creative, and hardworking. A property which is not in the best of shape might still work with a millennial real estate buyer because they are confident that they can put it all together.
If your buyer has some experience fixing things, they will not hesitate to buy a home which needs to be patched up a bit. Especially if the property price fits within their budget.
3. Keeping it simple
Another real estate trend among millennials is keeping things simple. Unlike their parents, millennials are not into fancy lights, gadgets, and state of the art furniture and appliances. Many millennials are practical and only buy appliances that they need.
In addition, furniture is also multifunctional, compact, and portable. More importantly, all the furniture and appliances they buy has to blend into the overall decor of the home. Unlike their parents, millennials prefer to have just one parking space and not clutter the driveway with cars which are rarely driven. Comfort and practicality are preferred over luxury.
4. Open space
Avoiding clutter is another trend which many Millennials are adopting. The idea is to have less in the home and creating more space. No longer is each hallway and room packed with furniture; instead, Millennials have only essential furniture so that there is more space in the home.
Open spaces has meant keeping the floor plans simple and bright. Having a huge kitchen is no longer a prerequisite. Instead, a brighter and spacious deck is preferred where one can sit, enjoy a meal, and relax. Unlike the older generation, millennials are not into entertaining large groups of people; just a small group of close friends, and hence they do not need a large dining or living room.
5. Social media influence
Millennials often go to online reviews for everything. A real estate agent who is working with a millennial should be aware that this customer's purchase decision will be heavily influenced by social media and online reviews. Also, the real estate agency/agent will a need to have a good online reputation to stand any chance with a millennial client.
6. Sustainability
Millennials are environmental and energy conscious. As far as real estate is concerned, sustainability is a must for them. They want to make a positive impact on the environment and thus usually buy property from builders who build environmentally friendly homes.
This means that the home will have energy efficient appliances, smart thermostats, non-toxic paint, solar panels, sustainable building materials, and natural ways to cool and heat the home. The more environmentally conscious and practically designed the property, the better the chance that it will click with this generation.
7. Technology
One major real estate trend among millennials is the introduction of technology. Millennials are very tech-savvy and prefer appliances and conveniences that are modern.
From Wi-Fi in every room to the use of the smartphone to turn on appliances and devices, robotic vacuum cleaners, wireless LED bulbs, smart faucets, solar-powered light outside the home, shower meters, thermal leak detector, and hi-tech security with motion detectors. They prefer this because everything integrates to their smartphone or tablet and can be accessed anytime and anywhere.
8. Additional Income
Since property prices are constantly increasing, and because most millennials are not inclined to agree to high mortgages, they often buy a property and rent out either the basement or the unused portion. This allows them to generate additional income which they can use to pay off their mortgage.
Millennials may not have the money to buy million dollar homes, but by buying smaller homes, they are willing to invest the money to make their homes more energy efficient, spacious, low maintenance, fun to live and are environmentally friendly.
They are also open to the idea of creating shared spaces, so renting out rooms to students/bachelors and sharing the kitchen and bathroom is quite common with these buyers. Millennials are changing the way real estate works, and they are also motivating builders to create homes that are trendy, hi-tech, and utilize space practically and creatively.
This article was written by Ryan Williamson with Onsite Property Management Services in Fort Collins. All content and photographs are courtesy of Onsite Property Management