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Unexpected Millennial Home Buying Trends
Are you around the age of 30-40 and are searching for a home? Keep reading to learn more about the most recent millennial home-buying trends for 2023.
The US Census Bureau reports that the largest population group in the US in 2023 is made up of millennials, people born between 1981 and 1996. Currently, there are over 72 million people who belong to this group.
Many factors impact the housing market, and millennials are now the biggest reason why the market and trends are reforming. Although many people are afraid of the current housing market, the millennial generation sees this as a prime time to buy.
It is important to understand generational trends. Over 60 percent of millennials have stated that they are planning to buy a home in 2023. Homeownership among this population has increased by about 65 percent over the past couple of years.
Millennials are changing the real estate market with their love for technology especially. The integration of technology in the real estate industry has made the process faster and more efficient. As the housing market is constantly evolving, the buying trends have also changed.
If you are a part of this group and are interested in buying a home at a young age or selling, keep reading to learn more about the home-buying trends in 2023.
1. Millennial's are Big on Tech
The millennial generation heavily relies on technology, particularly when it comes to purchasing homes. According to the National Association of Realtors, almost all millennials (99%) utilize online resources to gather information about the housing market and available homes.
It's worth noting that the millennial demographic has grown up in a world that is heavily reliant on technology, and as such, they have become quite proficient in its use. This population is generally more comfortable with digital and online aspects of life, as it is quicker and more accessible, which can make their lives easier.
When it comes to housing, it is worth considering that many millennials prefer tech-savvy homes, as they embrace the power of technology and are growing alongside the rise of technology, unlike other populations.
The advent of 3D virtual tours and digital floor plans has made it more convenient for people to view and buy homes. Millennials are more comfortable using these applications in home-buying than other age groups.
Real estate marketing has been flourishing lately, making it more straightforward for people who search for homes online to view available properties. The use of technology has made many things more accessible, including the process of searching for real estate agents. Those who depend on traditional methods have a lower chance of finding their perfect home than those who use technology.
The increasing popularity of virtual staging and overall virtual reality has made it feasible for millennials to purchase homes without physically viewing them. The rapid pace of technology has made the home-buying process faster and more convenient than ever before.
Overview:
- 99% of millennials use technology to view the housing market
- 41% of the buyers use virtual reality
- Social Media is helping the housing market
2. Wait Longer to Buy
Various factors can influence the delayed home-buying process for millennials and the whole population. One of the main reasons why millennials struggle to buy a home and prolong the process is the lack of understanding from older generations regarding their preferences.
It is crucial to understand why millennials are taking longer to buy homes. Several factors contribute to this, including high housing costs, current debt, and barriers to homeownership. Knowing why people are waiting to purchase can help us adapt to specific populations and make it easier for them to become homeowners.
Buying a home for the first time involves many aspects, and if the house does not meet their requirements, millennials will refrain from going through with the process. This is compounded by factors such as inflation, high mortgages, and rising home prices, which make it challenging for millennials to find their dream home.
Moreover, millennials tend to delay the home-buying process due to their student loan debt. Research has revealed that millennials face difficulties repaying their loans due to a lack of job opportunities and unaffordable home prices when compared to their income.
According to the National Association of Realtors, millennials are buying homes at a slower pace because baby boomers are not selling their homes as fast as millennials are searching for homes. This imbalance in demand and supply of homes makes it even more challenging for people to buy homes and find homes reasonably priced.
Overview:
- Older generations do not understand the younger population
- Student loan debt
- Marriage and kids
- Prices too high
3. Love Fixer-Uppers
Seeing how the pandemic has inspired more Americans to renovate their homes is encouraging. We are particularly impressed by the resourcefulness of millennials, who have shown a remarkable aptitude for research, a strong sense of personal preference, and the ability to undertake DIY projects with skill.
It's heartening to see how they are turning to fixer-upper homes as a cost-effective way to own a property, especially in light of the current high prices in the housing market. Additionally, it's exciting to observe how they are utilizing this opportunity to customize their living spaces to meet their unique needs and tastes.
It's worth noting that a majority of Americans (82%) prefer purchasing a fixer-upper home over a newly built one. Given the current housing crisis and low inventory, this approach is proving to be a viable solution to finding a dream home.
We recognize the challenges that older generations face when it comes to finding ideal homes for millennials. Therefore, we find it encouraging to see how the idea of taking charge of home renovations has become increasingly appealing. This newfound accessibility to what they want is making older homes and cheaper real estate more attractive to millennials.
We look forward to seeing how this trend will continue to evolve and shape the housing industry.
Overview:
- Fixer-uppers are more cost-efficient
- More available in homes
- Able to make the home the way they want
- Lower prices
4. Want Trustworthy Agents
When millennials are searching for agents to help them in the home-buying process, they tend to look for agents who are able to work with them and provide the necessary assistance, especially if it is their first home purchase. Millennials wait longer to buy a house due to various reasons, so finding a trustworthy agent who understands their wants will make their homeownership process more admirable and efficient.
About 79 percent of millennials are first-time homebuyers, so it is vital to find someone who can help them through every step of the way. Due to this population wanting different things than others, it makes it more difficult for them to find someone to help.
Millennials rely heavily on technology and do lots of research to find the perfect home for themselves or a professional to help them, so having good real estate marketing will increase the chances of millennials finding a trustworthy agent.
Understanding the wants and needs of specific demographics is essential when dealing with home buying. Millennials and even Gen Z value relationships, so they tend to lean more towards wanting an agent rather than doing their own research because they are new to the process.
Buying a house can be a daunting task, especially for first-time buyers. One of the first steps you should take is to find a trustworthy and affordable real estate agent to help you with the process. Working with a real estate agent has many benefits, so it's important to start researching and finding the perfect agent or company to assist you with the home-buying process.
Overview:
- 79 percent of millennials are first-time homebuyers
- Search for relationships
- Research more
- Lean more towards younger agents
5. Look for Charm in Homes
Different people are drawn to different types of homes. When it comes to millennials, they typically prefer houses with a combination of older charm and modern upgrades. As a large part of the home-buying population, they have varied preferences when it comes to their ideal homes.
The increasing influence of technology has led millennials, in particular, to seek modern upgrades in their home, such as high-end appliances. They also prefer homes that provide easy access to devices they rely on.
When it comes to finding a new home, affordability and space are understandably essential factors for millennials. Additionally, smaller homes are often seen as an attractive option due to their affordability and potential for customization. Taking the time to understand the unique needs and preferences of each buyer is crucial for providing excellent service and ensuring a positive experience.
As a generation that grew up in innovative technology homes, they are more likely to prefer homes that come with features they are already familiar with. They tend to favor what they are used to rather than trying out new things.
However, millennials also appreciate pre-war details, Mediterranean style, and mid-century homes. They love the unique charm of each house, especially when modern features complement the older ones.
Top Features Millenials Search For:
- Smart home technology
- Open floor plans
- Affordability
- Convenient location
- Modern upgrades (especially kitchen)
FAQs
What is the trend in millennial home buyers?
Millennials take up over 40 percent of homebuyers and are a part of the highest share of the generation. Most of this population were first-time buyers and are all reshaping the real estate market in many ways.
Are more millennials buying homes?
It is worth noting that millennials are fast becoming the largest group of homeowners and buyers. As of 2022, the proportion of millennials owning homes has increased to approximately 52 percent. Given that this demographic tends to be in the phase of life where they are looking to purchase their first home, they typically buy more houses than older populations.
What types of homes are millennials buying?
When it comes to choosing a home, millennials have specific preferences. They often look for homes in suburban areas as they begin to start families. Smart home features are also a popular choice among millennials. They enjoy modern features in their homes while still appreciating charm.
What are millennials looking for when it comes to real estate?
When searching for a new home, millennials often appreciate the value of modern amenities and open layouts, with a particular focus on having updated kitchens and bathrooms.
Millennial Home Buying Trends - The Bottom Line
Millennials and their affinity for technology are transforming the real estate market. The integration of technology with the real estate industry has made the process faster and more efficient. As the housing market is constantly changing, the buying trends have also evolved.
Real estate agents need to adapt to the changing trends, as millennials are projected to have a significant impact on the market in the coming years. It is crucial for agents to understand the specific needs and preferences of each individual buyer, as they have unique appeals, accessibility requirements, and income levels.
The influence of millennials on the housing market is expected to continue to rise and affect real estate trends in the future. Adapting to the changing trends is crucial for encouraging more people to invest in homeownership.
If you are planning to buy a home, understanding the current trends in millennial home buying will help you feel more confident in your search. At Raleigh Realty, we are committed to helping you find your dream home. Please feel free to contact us or visit our website to connect with one of our agents.
