They are the largest generation in history and the most diverse, but they don’t approach housing the same way as their predecessors.
Generation Y is immersed in technology, spending an average of 35 hours per week with digital media, nearly twice as much as non millennials, a report from Cultural Outreach Solutions.
Approximately 94% are active users of online banking, 72% are active users of mobile banking and 92% are active users of social media, Accenture’s report on the “Digital Disruption in Banking" stated.
“The story about millennials not forming households and getting into homebuying is more of a 2012 and early 2013 story,” Realtor.com’s chief economist Jonathan Smoke said in his annual forecast 2015. “It’s outdated. Our view of 2015 is informed by strong trends and indicators of what’s happening today with millennials.
“In 2014, it’s been a banner year for employment but parsed by age groups those under 35 have been gaining jobs at a 60% faster rate than rest – one of the best years for employment was even better for millennials,” he said.
So how should real estate agents sell to this new tech-savvy, young generation?
Cultural Outreach Solutions identified 4 millennial preferences in home purchases:
1. Moving Urban:
Millennials want to be close to their jobs and activities.
2. Moving Tiny:
In addition to growing trend towards tiny homes, Millennials as a generation care less about large spaces and more about accessibility.
For example, pod casting is predicted to grow in New York’s real estate market in an effort to appeal to younger renters in search of affordable living arrangements.
3. Eco-friendly Homes:
Millennials care about eco-friendly, “smart” homes in close proximity to their jobs.
There has been greater push for solar power homes lately as large banks step forward to help with funding.
“It will take a while for people to come to understand the system,” said Sandra Adomatis, SRA, LEED Green Associate.
How much a homeowner will make back by having solar power features depends significantly on location, she explained. If a homeowner's electric rate is above the regular 11 or 12 cents for a kilowatt-hour, there can definitely be value in the system.
Millennials desire homes that going to build equity quickly and will have a high return on their investment.