In order to sell anything, you must first know and reach your target audience. In Real Estate, your target audience is a ready, able and willing prospective buyer. But, as society is changing and becoming more technologically advanced, the home buyer profile of today is ever changing with each generation having its own unique criteria when looking for a home. As your Realtor, I want to help put your property in a position where it attracts the attention of all homebuyer profiles. To give you a snapshot of Todays Home Buyer, The National Association of Realtors performed a recent survey in figure 13 below.
In 2018, the largest age group of home buyers are The Millennials, and they are changing the way we live. According to NAR Chief Economist Lawrence Yun, “Millenial buyers , at 85 percent , were the most likely generation to view their home purchase as good financial investment.”
One of the main factors driving their home buying, is not surprisingly financial considerations. More than half of millennial home buyers have student loan debt, according to the National Association of Realtors. However, that is not stopping the millennial buyer from purchasing a home. Millennials are now having children, are considering growing their families, thus turning from renters into home buyers. While student loan debt is not holding them back from purchasing homes, it is prompting them to consider more affordable neighborhoods.
Millennial home buyers have graduated college, are starting to open their own businesses, and are having a shift in their mentality. The hype of, partying and booze festivals have slowed down, and now they are thinking of finding a place to live with the best schools, have walkable roads, and places where they can bring their stroller and their dogs. For the millennial home buyer it is all about desirability linked with affordability. According to NAR’s Generational Survey, “in 2017 only 15 percent of millennial bought homes in an urban area, down from 17 percent in the previous year and 21 percent two years ago.”
Millennials are choosing so called suburban areas, or those with a mix of suburban and urban features. These affordable communities typically have pedestrian friendly streets, quick access to open green spaces and popular public schools. Kathryn Bishop, a licensed Realtor, stated that “millennials are seeking housing in suburban areas because the properties are usually in better condition and are priced better.” Thus, “they have more money to enjoy entertainment like good restaurants and movies.”
Many millennials however, have not started to have children, and opt to buy homes and condominiums in the city. City living gives these young adults the flexibility to bike, walk or grab an Uber to their next adventure. They are enjoying the bright lights, vibrant night life, sultry restaurants and bars, music and arts communities and the close proximity to everything they need. For example, in Miami’s Brickell/Downtown area many millennials are purchasing high rise condos. Many work in offices in Brickell, just steps away from their homes. They have the luxury of short commutes in traffic, and all the amenities they need like the shopping, gym, grocery store, and movies in their neighborhood. In addition, the growth of the Tech Industry has created numerous cool tech jobs and millennials can now work from home instead of flying to Silicone Valley to work. These millennial buyers often choose to buy in the city, where they can be in the action to play and also conduct business and network.
The Millennial Home Buyer has matured and they are creating the lifestyles they want, and have a huge influence on how the Real Estate Market is changing to appeal to their standards. Below is Figure 14 are 8 ways to appeal to the millennial buyer in todays Real Estate market.