The real estate market is the best place to be if you want to snatch the most competitive investment strategy. From buying and flipping homes to owning TIC (tenancy in common) properties, the industry never runs out of money-making opportunities.
A new consumer trend is about to enter real estate; millennials are the fastest-growing segment of the new generation of home buyers. In this article, we’ll look at the different housing trends led by millennials and how you can keep with this new housing evolution.
Millennials want homes equipped with smart technology
The oldest generation of millennials, particularly between ages 27 to 36, are more likely to avail themselves of smart home systems. In highly sought-after neighborhoods, real estate developments are rebuilding properties to cater to millennial buyers.
Most of these homes are equipped with smart appliances, from the light fixtures, oven, refrigerator, thermostat, and entertainment systems that are wirelessly interconnected. To prevent network issues and power outages, smart homes include specialized closets that house servers, routers, hubs, backup power supplies, and security systems.
Smart homes with features such as electrical monitoring, security systems, humidity indicators, and freeze detection can protect both insurers and homeowners from possible damages and losses. Insurers can also collaborate with smart technology companies to lower risk and help consumers get lower premiums.
Millennials prefer an online homebuying process
From collecting information about the housing market and searching online listings, millennial homebuyers use technology extensively.
Millennials differ from other generations when using tech to communicate with real estate agents. The pandemic further fueled this trend, as more millennials prefer everything to be done online instead of risking their health and safety doing house tours.
Experts say that millennials have transformed the entire home buying process. With various digital tools at their disposal, millennials use their digital skills to navigate the housing market and find the ideal home.
In turn, agents and real estate companies are adapting to the new consumer trend by building their own website, application, and a virtual walkthrough in place of physical home tours. Many have also introduced online listings with special features, such as video and live streaming, to give clients a broader view of the location and property.
Millennials prefer energy-efficient homes
A study reveals that millennials are more environmentally conscious, so it’s not a surprise they’re leading the green revolution in real estate. In single-family homes, solar panels remain to be popular, as well as energy-efficient smart home features.
Suppose your home can reduce its cooling and heating costs. In that case, you’re more likely to attract millennial homebuyers who are willing to pay a premium to reduce their utility costs while helping the environment at the same time.
Millennials are shopping longer to find the best home
Surveys of home buying experiences reveal that millennials are more likely to shop longer to find a suitable home. They can be specific about making long-term investments, combined with the desire for modern home technology and a great location that suits their lifestyle.
Millennials can be experimental when finding the best living arrangement with sustainable features and lower living costs. Some go for condominiums, studio apartments, deluxe homes, suburban locales, and even tiny mobile homes.
According to the Washington Post, more millennials today choose the so-called “surban” areas, a mix of urban and suburban features. These affordable communities take pride in their pedestrian-friendly retail spaces, popular public schools, and access to green, open spaces. Millennials choose properties in suburban areas since homes are priced better and in good condition, giving them more time and money to enjoy their lives.
According to the National Association of Home Builders, millennial homebuyers prefer buying brand-new homes than older ones. The survey reveals that millennials don’t want to buy a home and allocate money for the remodeling to suit their desires. A newly-built property has lower chances of peril claims, insurance coverage usually offered by an insurance carrier. In other words, newly-constructed properties are likely to have lower insurance costs with higher rates of coverage.
Millennial habits and tastes are shaping the housing market in fascinating ways. As more millennial home buyers enter the housing market, we’ll be expecting more changes to be on their way. Their buying power is getting even stronger, so those who wish to invest in real estate should take advantage of this rising phenomenon. Grab hold on to these trends quickly before you miss out on the opportunities offered by this generation.
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