The Millennial generation is entering the real estate market in numbers way beyond than before. But when it comes to buying a home, how do they view the home buying process?
With a population of 83.1 million, the Millennial Generation now outnumbers Baby Boomers and represents more than one quarter of our nation, according to the United States Census Bureau. The Pew Research Center defines a millennial as anyone born between 1981 and 1996, or those age 22 to 37 as of 2018. Millennials are entering the workforce and the real estate market in greater numbers than ever before, bringing with them a new set of values and expectations. Here are some things to keep in mind when helping millennials with real estate transactions.
The may not be sure they want to buy a home. In fact, according to the Urban Institute, home ownership rates are down for millennials when compared to the two previous generations, Gen X and Baby Boomers, at the same age. Many millennials may prefer to continue renting, for a variety of reasons that include delayed marriage and job flexibility. Preferring to live in cities and urban environments with higher real estate prices is another often-cited reason by millennials for renting instead of purchasing a home.
They may be more frugal than you think. Millennials often carry significant student debt or they may be in underpaid jobs when compared to their education level. Another factor that could influence spending habits is that millennials likely remember the most recent recession and housing bubble, which could sway their real estate purchase decisions.
They embrace technology. Because they grew up with technology at their fingertips, they use it frequently and expect their real estate partners to do the same. Millennials are likely to employ technology to do their own home searches and associated research. Because they communicate largely through technology, their perspective of a normal workday is outside of the traditional Monday through Friday, 8 a.m. to 5 p.m. timeframe.
They are influenced by social media. More than just for socializing, millennials use social media for professional purposes as well as for consumer choices. They are active on channels like Facebook, Instagram, LinkedIn, YouTube, Twitter and others, where they like to connect with business colleagues and service partners (like you) as well as with friends.
They care about energy efficiency. When looking at homes, millennials are likely to take the energy performance of systems, appliances, and the structure into consideration. They care about energy efficiency from an environmental as well as from a cost savings standpoint. Their comfort with technology extends to energy-saving devices and advancements for the home.
They’re relationship driven. For all their dependence on technology, millennials still value one-on-one time and personal relationships. When making important decisions, millennials tend to seek out expert advice as well as solid information and hard data. Building relationships with millennials can help win their trust as well as their future business.
They may not know much about home ownership. Particularly if they are first-time homebuyers, millennials may not be familiar with what it takes to run and maintain a home. An American Home Shield® Home Warranty can provide valuable coverage for many of the most expensive home systems and appliances to repair or replace. An American Home Shield Home Warranty can also provide reassurance and be a resource for millennials to use when covered items break down due to normal wear and tear. Telling millennials about the many benefits of American Home Shield Home Warranty protection is a great way to answer some of their concerns and build lasting relationships in the process.