A whopping forty-three percent of potential real estate buyers are made up of this group we call Millennials– the most of any generation. And this pool of buyers has increased from 37% as of just last year. It is estimated that Millennials represent almost 24% of the world’s population, much more than Generation X (19.5%) or Baby Boomers (17.0%). Truly, Millennials represent a force to be reckoned with. As a real estate agent, you need to understand what your Millennial buyers are looking for when it comes to the purchase of a home. Indeed, your business will depend on catering to Millennial buyers.
Millennials are defined as having been born between the years 1981 and 1996. As such, today’s Millennials are between the ages of twenty-two and thirty-seven years old. They are typically better educated than previous generations and have cut their proverbial teeth on technology and smartphones.
WHO ARE MILLENNIAL BUYERS AND WHAT DO THEY WANT?
The Millennial generation grew up in a period of rapid change on a global scale characterized by the digital revolution and the economic crisis of 2008. Many Millennials faced a tough job market and crippling student loan debt. As a result, they have been shaped by those market forces and tend to share common characteristics, such as:
- Millennials do things later – such as marriage, buying a house, and having kids
- Millennials like to “try out” locations and jobs by renting first, and as such, settle on a location and buy later in life
- The “new affluent” is made up of well-to-do Millennial buyers and sellers
- Millennials are the most educated generation in history (thus far)
- Millennials are deeply tied to social media and the internet
- Millennials are said to be more risk-averse than previous generations
- Millennials gravitate toward turn-key properties, rather than fixers
- Millennials are currently the biggest investors in art and prefer lots of wall space
- Millennials crave indoor/outdoor “spaces”
- Millennials prefer to put their “stamp” on a home by picking out custom upgrades
- Millennials want designated office space to come with a property so they can work remotely
- Social responsibility is highly important to Millennial buyers, and they embrace things like “New Urbanism”, green building and pedestrianism
HOW MILLENNIALS SHOP
Millennials tend to do most, if not all, of their research and shopping online. If you are an agent catering to Millennial buyers, your business model must be primarily digital. The Millennial generation is drawn to shopping for homes online. Do whatever it takes to make yourself show up online on a variety of platforms—your own website, Zillow, Realtor.com, and so forth. Millennials will most likely go with an eLoan, so make sure you are partnering with mortgage professionals who specialize in this type of business.
Although the economic environment was not entirely favorable during their youth, the Millennial generation is incredibly well-trained and well-educated. Millennials also possess a great ability to adapt to new technologies. As such, catering to Millennial buyers will sustain your business for future longevity and growth.