Keeping up with real estate trends can be a full-time job, but you don’t have to be an expert to recognize one major trend that’s changing things in a huge way: millennials buying homes. As young people reach home-buying age, they are rapidly becoming one of the most powerful forces in the real estate market.
So whether you’re planning on buying a home, selling a home or selling your old home to buy a new one, it’s important to understand this key demographic.
Why millennials matter
In 2017, many homeowners are thinking about selling their starter homes and upgrading to something bigger, more modern or in a better neighborhood. If you fall into this category, it’s crucial to understand who will likely be buying your older home. Realtor.com predicts that more than half of all homes will be purchased by first-time buyers this year, and that a huge chunk of these buyers will be millennials.
Composed roughly of those born between 1980 and 2000, millennials are now the largest generation in the housing market. According to data from the National Association of Realtors, millennials made up 35 percent of homebuyers in 2016, and all signs point to that number climbing even higher in 2017.
Selling to millennials
With millennials making up such a sizable part of the housing market, it’s important to understand what motivates them to buy and what they look for in a home. Millennials are often looking to move out of their parents’ homes, escape from renting, relocate for a job or start a family.
A few things to keep in mind as you get your home ready for sale:
- Millennial buyers are more conservative with money than one might expect, and they want to make sure that buying a new home is a sound financial investment. Realtor.com reports that 37 percent of young buyers find coming up with a down payment to be their biggest home-buying obstacle, while 30 percent worry about finding a home within their budget.
- Technology is one of your greatest allies when it comes to enticing young buyers. Creating a quality online listing for your home is crucial, and it’s a good idea to have your home photographed professionally. As many as 94 percent of millennials looking to buy a home will use the internet as a search tool, according to Bankrate.
- Largely motivated by a desire for more living space, the newest generation of homebuyers heavily favors single-family and town homes over multi-family homes and condos. A spacious lawn and backyard is a huge plus.
- Low maintenance is a big factor for many millennial buyers. Sure, some might have a romantic idea of buying a fixer-upper and making it their own, but most are looking for a home that is move-in-ready and won’t require too much maintenance down the line. Updated kitchens and bath areas are big, and many young buyers are also keenly aware of a home’s energy efficiency and technological capabilities.
At Clark Wilson Builder, we’re committed to helping you find your dream home in the Austin, Texas, area. Contact us today to learn more about how the trend of millennials buying homes can help you upgrade to a better home!