For every generation, marketers tend to study the needs of each generation holistically.
According to Pew research, Millennials make up 23% of the American population and 24% of the EU population. This population is almost 1% more than baby boomers who now make up slightly above 22%.
Marketers are keen on this mammoth population numbering over 75m people. Their differing tastes and preferences are already changing the housing market in many ways.
Zillow estimated that Millennials make up about 42% of the housing market demand and inquiries. Shared working communities, serviced apartments and such convenient housing choices are on the rise. Another peculiar item is that 90% of Millennials use internet search and a further 60% use mobile apps when searching for homes. More importantly, over 50% of them find houses online.
Top of the list of demands for Millennials is their on-the-go lifestyles, and they will do anything to keep it that way.
1. They are more rigorous than their counterparts when searching for a house
They can traverse one corner of the internet to another looking for a rental apartment. They will start from reading content on ‘tips for finding a good home‘ to ‘top ten home ideas.’
- They start with online search
Their online search is much informed when compared to that of other older generations. Most of them are tech savvy. They know how to use and navigate the internet with ease. Unlike baby boomers who often misunderstand internet terminologies, these guys are well informed.
- They conduct due diligence on scams online
They know how to identify frauds and fraudulent activities. They have a lot of information from forums and scams alert. They conduct extensive due diligence before contacting an agent. They also prefer self-service agents where a person can check payment, history, and other items on their own.
- They ask friends and family for advice, but mostly from friends
Even after doing all the research and due diligence, they still consult friends. They do so on online forums or directly regarding the service or product before committing.
A seller, agent or owner must have:
- A positive outlook about the property
- Have a strong digital footprint, website, images, social media, etc.
- Be active online and responsive to queries
2. The desire for convenience
Millennials crave for convenient lifestyles. They prioritize proximity to social services such as wellness centers, gyms, free Wi-Fi, and proximity to public transport as opposed to space and grandeur.
They want a convenient house preferably near 21st C amenities like shopping malls, Wi-Fi access, furnished apartments, serviced apartments, etc.
They opt for convenience even if it comes at a cost. This desire means millennials want to rent and not buy. After all, buying in such convenient spaces would be more expensive for most of them.
Agents and sellers targeting this age group must show adaptation to technology, convenience regarding situation among others.
3. They prefer renting out
Millennials are a little carefree, and most of them prefer late marriage, relationship or commitments. This lifestyle means that their disposable income is significantly lower.
Millennials are looking for freedom to move from one place to another. Buying makes them stagnant. Any commitment that may interfere with their on-the-go lifestyles is foregone without much hesitation.
The housing prices for typical American dream homes are almost four times what most Millennials can afford. At such expensive prices, they cannot afford homes and therefore the preference to rent out.
They are open liberals about marriage and relationships. According to Urban Land Institute, a good percent of young millennials 18-24 prefer shared rentals as roomies. They argue that it enhances affordability and the perceived sense of community.
4. They have a preference for small housing units
Older generations prefer palatial homes with guest bedrooms, garden, and two garages among other amenities. Millennials prefer a small, compact living housing unit preferably with minimal commitment and attachment. They also value pet-friendliness, liberal communities, etc.
Housing prices, interest rates, insurance costs, down payments among other competing demands notably student loans are threatening to price-out Millennials out of the housing market, but they must survive.
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