Millennials are a massive group of people - about 72 million - who have entered the home-buying age as their careers take off. They are starting to form families and accumulate savings. They will continue to grow their wealth over the next few years and many will be beneficiaries of gifts from parents and grandparents. These inheritances are expected to tally the greatest wealth transfer in history - $68 TRILLION.
Every single day I'm seeing younger buyers being assisted by parents and relatives, to assist them in getting their foot in the door of a home in this high priced environment. The two common themes that I hear most regularly are:
A recent report by Lending Tree listed the top metro areas 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 and 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.
5. Open floor plans that connect kitchen, dining and living rooms to outdoor space. They love outdoor living spaces.
6. They love a sense of community, walkable neighborhoods and a short commute to work. Low crime rates, good schools matter with 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 to properties. I would be delighted to help buy your first home. Nothing brings me more joy than giving the keys to a first time home buyer. Please reach out so we can help your dream come true.
Thank you Leonard Steinberg from Compass.