For a long time the real estate has not been paying the millennial would-be renter or house owner much attention, but that is rapidly changing as they come of age. In the market today, millennials happened to be the largest segment of renters and homebuyers; in fact, more than baby boomers. As a landlord, real estate agent, or home seller, it’s time you look beyond stereotypes and find out what millennials are truly interested in.
A huge number of millennials are interested in purchasing a home, and a big percent of them are first time buyers. While many believe that the millennials have their priorities wrong, the true picture is that this generation believes that homeownership is a crucial component of achieving the American Dream.
In fact, the millennial generation is a driving force in the real estate market with figures standing at 36 percent. However, does this generation want the same things as what baby boomers want?
When millennials look for property, they are overwhelmingly dependent on online listing services, find this listing as an example, but they still rely on partnerships with real estate agents. Since homebuyers don’t pay real estate commissions, real estate agents play an active role.
The dependency on technology is not surprising, but it’s higher than the combined amount of traditional methods like asking friends and relatives, newspaper ads, as well as driving through different neighborhoods. In addition, millennials are more likely to use smartphones for their home search compared to other older generations who are in favor of tablets and computers.
Priorities for the millennial home buyers and renters are very different. For one, millennial renters look for properties close to restaurants and bars, shorter commute times, and close to relatives and friends. On the other hand, the millennial homebuyer places a priority on safe neighborhoods and excellent school districts.
As the generation gets older, they tend to have the same interests as previous generations and become more interested in a quiet life with family close to cities and amenities. Millennial home buyers and millennial renters have drastically different priorities; the former category is in fact more traditional in terms of priorities. However, not all of them are interested in purchasing homes, some are looking for more space and would rather save money compared to renting.
It’s important to mention that many are renting due to choice and necessity. As Generation Y looks into purchasing, landlords have to adapt to the needs of their potential and current tenants.
Renting to Millennials
As mentioned above, millennials are rapidly looking at homeownership, but they have different requirements. While you may consider millennials as part of the same group, buyers and renters have very different requirements due to stability, work, and family.
In 2019, millennials aged between 23 and 38 are a large home purchasing demographic, but they are also a massive customer base for renting. In other words, individual landlords, brokers, and property owners have to rebrand to the interesting of this market.
More Expectations from Rentals
Since they are historically the most educated generation, millennials are earning much more than previous rental generations. But, the increase in wages is not in tandem with inflation, meaning that millennials have more disposable income in some cities.
This means that your millennial tenant is likely to have more pets than the older generations, so your property should be as pet-friendly as possible. At the same time, you should also vet noisier or larger dogs so your other tenants are not irritated.
Millennial renters are also more likely to look at properties close to amenities such as public transportation, restaurants, and shops. The more affluent are more willing to pay a premium for conveniences of modern fixtures and appliances.
Plus, they are looking at open floor plans that are inviting and more spacious. Finally, such tenants are more interested in the bundling of expenses like cable, utilities, electricity, and parking spots.
Some of the concerns mentioned above have to do with location, but as a property investor or landlord, it’s time you put in place important renovations and policies that are more appealing to the millennial generation. Fortunately, this demographic is growing, which means that considering the above can be a successful investment strategy.
The following blog post was contributed by Ashley Lipman.
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