Millennials Are Causing a Surge in New Home Building
Millennials are a steadily growing source of new home buyers, and their home preferences may be different from what you’ve heard or thought to this point. Many people believe millennials only want to live in trendy, up-and-coming cities or are only interested in urban neighborhoods that are in the center of it all. Millennials often get a bad reputation for being too self-centered and dependent on technology, but the most recent trends in home building and buying beg to differ.
60% of millennials say they plan to purchase a new home in the near future. This equates to a lot of home purchases when you consider this generation consist of 92 million people, making them the largest generation yet and a very large group of potential first time home buyers. The oldest are right around their mid-thirties, while the youngest are still in their teen years. This group tends to be waiting longer to get married and have children, which also equates to buying or building homes later in life as compared to their predecessors. However, within the next few years, millennials will overtake the home buying market and comprise a majority of new home owners.
While millennials may be planning to purchase a home in the future, there are certain hurdles they’ll have to overcome first. For one, student debt has increased, making it more difficult financially for millennials to settle down. Finding loans and coming up with a down payment only adds to this difficulty. Still, millennials are predicted to account for two-thirds of new households over the next five years, which means a big increase in home buying.
So, what are they looking for? Millennials may seem to desire trendy, up-and-coming neighborhoods, but studies show that an overwhelming majority (55-66%) would prefer to live a simple, quiet life in the suburbs. Many people in this generation would sacrifice drive time, space, and neighborhood in exchange for a more affordable cost, while quality of the home is not on their list of negotiables. Most would be happy with a single-family home (75%), while others opt for a two-story or open concept type space. Almost all millennials say three to four bedrooms and two and a half baths would be their desired dream home.
Interestingly, but perhaps not surprisingly, this generation is the most keen on using energy-efficient appliances and materials in their home building. About 80% said they would prefer a slightly more expensive home with energy saving features over a lower-cost and potentially more wasteful one. With the rise of green electronics and home practices, it makes sense to jump on board and save the environment when purchasing a new home.
Everyone equates millennials with technology, so it makes sense the overwhelmingly majority desire to be connected with the properties they have to choose from. They frequently utilize the Internet and prefer to only look at listings with pictures that can provide instant information. In fact, being able to obtain online information is very crucial to this generation and greatly affects their prospects.
Certain other miscellaneous aspects are also proving to be important to these young homebuyers. Outdoor space, pet amenities, and a small, close-knit community are at the top of the list. They also prefer plenty of storage and modern, yet functional design aspects. Watch out for this new generation in the coming years—they are growing older and more financially stable, and ready to purchase and build new homes.