Millenials are a massive group of people - about 72 million - who have entered the home-buying age as their careers take off, and they start to form families....and start accumulating savings. They will continue to grow their wealth over the next few years and many will be beneficiaries of gifts from parents and grandparents ......and inheritance, as the greatest wealth transfer in history - $68 TRILLION - happens simultaneously.
Every single day I'm seeing younger buyers being assisted by parents and relatives, at different levels of course, to assist them getting their foot in the door of a home in this high priced environment. The two common themes that I hear most regularly are:
1. If you get my money, use it on education or a home.
2. Don't waste money on rent.
A recent report by Lending Tree listed the top metros in the US where Millennials are buying. They are: San Jose, Denver, Boston, Seattle, Austin, San Francisco, New York, San Diego, Los Angeles and Washington DC. Surprisingly, the sunny climes of Las Vegas, Birmingham, and Phoenix, meanwhile, make up the smallest share.
What do Millennials want in a home (NAR study)?
1. They love cities, but often buy in suburbs for the schools/more space.
2. They are often happy in smaller homes.
3. They want to spend less on a fixer-upper to spend it on redesigning. Many are semi-frustrated-HGTV-obsessed.....
4. Outdoor space and back yards matter lots.
5. Open floor spaces that connect kitchen, dining and living....to outdoor space are preferable to most. They love outdoor living spaces.
6. They love a sense of community, walkable neighborhoods and a short commute to work. Low crime and good schools matter. Gyms close by.
7. They love customization and personalization. Often a mix of traditional and modern. Home-based amenities like a gym or media room appeal.
8. 80% want a laundry room, hardwood floors and storage. An impressive kitchen with an island is at the top of the list.
9. They love home technology and want more energy efficient homes that are healthy and eco-conscious.
10. They want low maintenance.
While the vast majority of Millennials search online prior to buying, they seek the guidance of a professional agent to navigate editing, negotiations, get better insights and access, and understand all the subtle nuances no do-it-yourself internet Google search can deliver.
