How millennials will affect trends in the real estate marketplace in 2020 and beyond
Understanding the emerging housing trends of millennials could be one of the smartest moves real estate investors can make this year. Young adults will continue to shape the housing market and they often have vastly different priorities when considering their home than those of their Baby Boomer or Generation X parents.
If you aren’t already actively tracking the impact that millennials have on the US housing market, you could be losing out on a sizable portion of your property business.
RE Indicator are experts in providing the right tools to real estate investors, to help you gain a new perspective on how the market will be driven by the rental and multi-family housing and leasing options available to millennials.
Here’s our guide to understanding how the emerging real estate trends of millennials will drive demand – and how you can be at the forefront of the trend, by using proven tools to navigate within the marketplace to find the most lucrative investment opportunities.
Putting down roots is not as important to millennials
Unlike previous generations, many millennials are choosing not to be pinned down to a certain property or place. Renting brings freedom to those who want to travel, explore and experience different cities, countries and cultures.
Property investors who wish to attract millennials might wish to offer shorter term rental property leases which align with their flexible lifestyle and won’t tie them down in the long term.
Millennials do their research
Smartphones have opened up massive opportunities for the rental market, and millennials are the first generation to grow up with technology as part of their everyday life. They use it to research everything from which bars and restaurants are trending to looking for their ideal rental property.
They are more informed than previous generations about house hunting and use the Internet as a powerful tool to view and research neighborhoods, education systems and potential homes, in a modern, tech-savvy way to aid their search for a property.
Real estate investors who are serious about meeting the needs of today’s house hunter need to be visible online and market and communicate through accessible channels such as social media and providing video walk-throughs of properties.
Another fast-growing and emerging real estate trend of millennials is their demand for smart technology within the home, with the average millennial prepared to pay 20% more* for a home with integrated technology such as smart door locks and automated controls throughout the house.
They want to protect the planet
There is a global need to become more environmentally conscious and millennials are leading the charge by demanding living spaces that are more energy efficient.
Property investors need to ensure they can offer a ‘green’ home as increasingly young adults are searching for a living space which utilises solar power or energy-efficient heating, lighting and appliances, all of which can add more value to the price you place on your investments.
Millennials are an environmentally responsible generation who are increasingly looking for a community in which they can walk or cycle, rather than own a car.
Affordability can make or break the deal
According to recent data from the National Association of Realtors®, the average student debt of someone aged between 22 – 29 years old is $26,000. Many millennials simply can’t afford to purchase their own home until their student loan decreases, which is another reason they choose to rent a property (often with their peers to make the monthly rental payments more affordable).
Smart millennials will seek out homes that they can still afford if their employment circumstances change or if the economy takes a downward spiral. The COVID-19 pandemic has seen many Americans lose their jobs, so affordability is perhaps the key consideration for millennials at this time, more so than ever before.
RE Indicator can help to keep you on track with millennial housing trends
The millennial housing market is fast-paced and can be hard to keep up with. RE Indicator provides the tools that property investors need to make purchasing real estate faster and less expensive, with access to vital market data to help you make the best housing investments to attract young adults looking to move into a rental property.
Start your journey to discover the emerging real estate trends of millennials by contacting our team on (617) 963-0918.