What Millennials Want

Since the average age of first-time homebuyers is now around 32, we are dealing with millennials now.  The average age of a seller is 57, and the average age of a real estate agent is about the same.  That means  that both sellers and agents have to educate themselves about what's changed in buyer preferences.  I had friends who were the above age, with an agent of the same "vintage", and she told them that their home was perfect.  Although it was highly desirable, and in a great location, selling quickly, millennial buyers most decidedly had opinions on the décor and finishings.

Millennials want, above all, convenient, walkable locations, and homes that need no work at all.  It would be hard to say which of those things would come first, and they are very different--one you can fix, and one you cannot.  Flippers and investors take note, because you can definitely make money on properties that just need some updating and are in desirable places.

What do they want to see inside a home?  An open floor plan.  Soapstone counters.  Gray walls.  Big, luxurious bathrooms.  Fancy appliances and fixtures.  The list could go on, but you get the idea.  DIY is OUT. 

Where do they want to live?  In cities, near cities, and near town centers.  How much of the purchase do they want to finance?  All of it, or as much as is possible.  At current rates, almost anyone would make that choice.  Who else is involved in the decisions?  Their parents.  I've dealt with more parents in the past few years than in my entire career.  The helicopter parent has landed!

We certainly sell homes to non-millennials, and we certainly sell homes that don't match the above descriptions.  However, it's always worth knowing what the trends are.  But don't wait too long to act, if that's your intent, because tastes will change again; that's the one constant in real estate.

Calling All Investors

Last week, I was in D.C. for the National Association of Realtors meeting, and there was a lot of talk about millennials and what they want and value.  What they want are dwellings that are open floor plan and completely updated--no fixer-uppers for this generation!  What they don't value like their parents and grandparents did is home ownership, although that could change, as they (belatedly) form households and have children.

That leads us to examine another growing trend across the country--single family homes as real estate investments.  Millions of homes are now owned by individuals, not institutions, for investment purposes, and are rented out.  Millennials are a prime target group for this activity.  It's not enough to buy the home, however; you need to update it, and make it into something that a renter wants to pay to live in.  

Where in our market do such opportunities exist?  Ahh, that's where you need to call a Realtor, since we know the latest sales, and which neighborhoods are hot and which are not, what features need to be added, and where renters want to live.  Flippers, give us a call.  We'll be waiting with advice.