Why Millennials Are Now the Hottest Segment of the Buyers Market and How You Can Attract Them to Your Home
There are many factors when it comes to knowing how to sell your home to the Millennial generation. Millennials are becoming an important part of the buyer market, and to fail to cater to their needs will cut you off from a large and important segment. But, why have Millennials all of a sudden become interested in buying houses when they were perfectly content to rent for the rest of their lives?
A number of factors contribute to what has recently made Millennials the hottest segment of the Buyers market. One factor is the improved job outlook for Millennials. Millennials took a serious blow during the recession. Unemployment in this group soared to 14 percent, compared to the 9.6 percent for the population as a whole. But, in recent years that number has been decreasing, with unemployment for Millennials being 9.3 percent this past year.
Rising rents are also contributing to making Millennials more interested in purchasing homes now. Rents have risen so much that buying a home now just makes more sense. Half of all renters spend more than 30 percent of their income on housing. Millennials are becoming increasingly stressed over the constantly increasing financial obligation to something that isn’t even theirs to own.
The near-historic low mortgage rates are luring Millennials towards purchasing a home with their promise of affordability. When compared with the skyrocketing rental rates, buying a house looks even more enticing.
Another factor helping Millennials get over the hump of purchasing a house is the lower down payment requirements. Fannie Mae and Freddie Mac are now offering new loan programs that require as little as a 3 percent down payment. This may just be the last push the Millennials needed to turn toward buying a home rather than rent.
So, now that we’ve established that Millennials are finally joining the Buyers market, the next thing that it is important to understand is what exactly Millennials are looking for in a home. What kind of floorplans do they prefer? What locations are they interested in? Here are some of the essentials that Millennials are looking for in a home:
- Updated Kitchens and Baths: Almost everyone wants to buy a home with new kitchen and bath fixtures, but this is especially true for Millennials Buyers. Millennials are going to spend most of their savings on the down payment and furnishings, leaving little room to update the Kitchen and Bath, which are also the most expensive parts of a home to update. Millennials who are on a budget simply won’t have the money to sink into those areas. An updated Kitchen and Bath is sure to bring in a younger crowd.
- Big Kitchen with Open Floor Plan: For Millennials, the kitchen has become the room where they hangout in addition to the family room. This is why having an open space that can transition easily from the kitchen to the TV room is high on the list of things Millennials are looking for in a home. Along a similar vein, Millennials are attracted to an open floor plan rather than one that compartmentalizes the home. This has to do with how Millennials entertain. Millennials want their guests to flow through the rooms and mingle together, rather than be sectioned off in different rooms.
- Home Office: More than 13 million Americans now work from home, and if you look at the trend, that number is only going to increase as the time goes on. With technology steadily increasing, more Millennials than ever have the flexibility to work from home. But, the home office isn’t just for someone working from home full time. Having a separate space dedicated to work helps people concentrate and focus on work while they are at home. They can separate themselves from the activities going on around the house and have a quiet space where they can set up their workday, plan a presentation, hold a meeting on Skype, or even pay bills.
- Less Maintenance: Many Millennials work different schedules that don’t conform to the 9 to 5 workday, as well as full social calendars. This doesn’t leave them much time to clean a big house. Lawn services and low-maintenance front yards are particularly appealing, as they take less responsibility to still keep the curb appeal high.
- Energy-Efficient Appliances: Millennials have been educated on keeping the Earth clean from the time they were born. They want to do their part to help the environment and appreciate the long-term cost savings that come with it. Energy-efficient appliances and greener ways to heat and cool the home might end up being the tipping point that makes them choose one house over another.
- Hardwood Floors: Millennials don’t have the time or patience to clean dirty carpets, especially those that own pets. Hardwood and laminate flooring is easy to mop up if there’s been a mess. The more time they can conserve, the better.
- Good Location: Millennial buyers are looking for homes that are in proximity to public transportation and have a good walking score. Young Millennial buyers without children are more likely to want a location closer to the action of the city, while Millennials with children would prefer more residential areas.
- Technology: Technology rules the Millennial’s life. They do work on their computers through an Internet connection and solely use cellphones for communication. They are going to ask about how strong the cell service is and about the Internet service provider. While these amenities are out of the seller’s hands, Millennials are still going to ask these questions, and you will need to know how to answer them.
Knowing what Millennials are looking for in a home will ultimately help you make the necessary changes that will attract these buyers to your home. Since they are the a serious segment of the market now, updating your home to fit their needs will lead to more buyers and better offers. So, get with the times and embrace the Millennial buyer.