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.

New Haven Rentals

Did you know that New Haven has one of the best rental markets, and lowest vacancy rates, in the country? It's not terribly surprising, given all the students in the region, but it is good news for people who have property to rent. Every year a steady stream of students and faculty comes in, often from places very far from New Haven, and they won't sometimes be here long enough to buy, and of course many students can't afford to buy. We do sell some real estate, however, particularly downtown condo units, to students (or really their parents, in most cases). Grad students these days come in all ages and phases, and some are studying after they retire. In addition, every once in a while, parents follow their children. I once met a woman on a tour of a boarding school with our children and asked where she was from. She said that she didn't know yet, because she and her husband were planning to move to wherever their child decided to attend school! While that is taking helicopter parenting to a new level, it does increase real estate transactions.

This all just goes to show that we cannot make too many assumptions about rentals and students/families, because the demographic group is diverse enough to fall outside the normal parameters we might place on the category. So, if you own property, or are looking to buy investment property to rent, you should certainly consider the educational market. It's real, and it's big.