Did you know? The millennial generation is comprised of those born between 1981 and 1997, and is the largest generation in U.S. history. This generation is prepared for a competitive real estate market, and they’re willing to ask their parents for financial help, if necessary. A recent HarrisX survey, funded by realtor.com, showed that 75% of millennials are working remotely with 63% of them ready to buy a home now for this reason. Overall, 49% of millennials say that their home search is happening sooner than expected. If you are considering listing your home for sale, this is a demographic that you will want to consider catering your marketing efforts towards.
Home search techniques
It goes without saying that you don’t get a second chance to make a first impression. This is precisely the case when initially marketing your property. In short, basic smartphone photos for a home listing will not cut it here! Below is a snapshot of some recent trends with millennial home buyers’ home searches:
- 37% spent more time researching properties online
- 35% spent more time looking at listing photos
- 32% spent more time watching listing videos
- 31% were more selective about the homes they decide to tour
- 27% drove by the home to check out the neighborhood
Views on buyer competition and the urgency to buy now
Overall, the millennial generation has rounded the corner on home ownership and they certainly do not lack confidence. They fully expect a competitive buying environment and are willing to accept the challenge. Below are a few more findings from this survey, reflecting their attitude towards the current housing market:
- 71% of millennial respondents expect some or a lot of buyer competition in the market
- 68% said shelter-in-place orders helped them save for a down payment
- 45% expect financial assistance from family or friends
- Over a quarter – 26% – of millennials said they’re tired of their current home, and that was driving their desire to purchase one
- 23% of millennials said a growing family was the main driver
- 22% cited favorable home prices
- 20% cited favorable interest rates
- 18% reported a desire to live in a safer neighborhood
What kind of home do they want & where?
Overall, most millennials have been working remotely during the pandemic & this has led to better saving for a down payment. Due to the various shut down orders and curfews, many millennials have been home bound and limiting their expenditures. As a result, this has pushed their homebuying timeline even sooner. While many are first-time home buyers, some are also viewing this as an opportune time to upgrade their living situation. Oftentimes, more space is the dominant buying motive. Below are some additional findings from the survey:
- 36% are looking for an “entry-level” home at or under $200,000
- 28% want a home between $200,000 and $350,000 (Altogether, 63% of millennials seek a home at or below $350,000 – the median U.S. price)
- 37% of millennials are looking for a home over $350,000
- 54% believe home prices have hit their peak
- 49% want to move within their current city
- 31% want to move from the city to the suburbs, a higher percentage than either Gen X or baby boomers
- 13% want a different city but in the same state
- 8% want to move to a completely different state
Summary
If you are considering listing your home for sale, it is important that you pay close attention to the millennial demographic. As a dominant force in the real estate market, you will want to ensure that your real estate agent is acutely aware of effective ways to market your property to these buyers. Not only is this demographic comprised of first-time home buyers, more and more millennials are looking to upgrade their homes. A combination of working remotely plus increasing family size is contributing to these home searches.
