Millennials now make up a majority of the population. Because of this shift, the real estate industry is beginning to feel the effects of millennial home buying habits and trends. As more millennials pay off student debt and grow in their professional fields, more millennials will emerge in the real estate market, looking to rent or buy property. To accommodate for this gradual shift, those in the real estate industry must take a look at how millennials approach the home buying process.
Technology & Research
A majority of millennials take to the Internet when they want to learn something. This tendency to look for information online naturally extends to the home buying process. Millennials want to be informed before making a commitment, and they are more inclined to rely on their smartphones to locate relevant information than individuals of older generations. What this means for the industry is that the very nature of the real estate market must change. Where real estate agents were once relied upon for their wealth of knowledge and guidance, their skill sets must not prioritize negotiation and networking in order to win over millennial buyers.
Among the most important factors that contribute to a millennial’s choice in real estate is the safety and security of a neighborhood as well as the quality of the school district in which the property resides. It is important to note that millennial renters and millennial buyers have vastly different priorities; while millennial home buyers appear to have a more traditional approach and aspire to settle down or raise a family, millennial renters are more inclined to value nearby amenities, commute time, and city life proximity.
Though millennials tend to turn to technology to acquire information, they still value human interaction. Real estate professionals should remember this when looking to sell properties to millennial buyers. The quality of an interaction can outweigh its frequency and length. Treating millennial home buyers with personalized care and attention is key.
As a rapidly growing demographic, millennial home buyers are set to change the atmosphere of the real estate industry. While many millennials continue to rent due to personal preference or financial necessity, more millennials are looking to purchase a home. Taking heed of millennial trends when it comes to real estate will prove invaluable in the coming years.