Millennial Home Buying Trends | Revolutionizing the Real Estate Industry
Millennials are moving in! Whether we’re discussing the workforce or the housing market, those born in the 80’s and 90’s are making their move. They’ve been praised and they’ve been misunderstood but the truth is, they’ve had an extensive impact on our economic recovery. With an influx of millennials purchasing houses and with homeownership rates equaling four times as much in previous years, this large group of purchasers are strategically entering the home owner stage and here’s how.
They’re Utilizing Technology
Between scrolling through their Instagram feed and placing orders on their food app’s, Millennials are revolutionizing the home buying process through technology. According to the National Association of Realtors, 81% of purchasers from this group found their home through mobile apps. Given this information, you’ll start to notice that some of the largest real estate firms in the United States will continue to modernize their services through technology in order to provide a unique experience for older Millennials who are searching for homes.
As these real estate companies continue to incorporate technology in the real estate industry, they’re creating a seamless and convenient process for home buyers. Here are the top upcoming real estate trends we can expect to see in the coming months and years.
Buying & Selling Platforms - The idea of enhancing these platforms will make the listing experience much easier and faster for home owners while home buyers will be able to find homes that match their criteria quickly. Overall, this process is a win-win for both parties!
Virtual Walkthroughs - While this trend has already taken off and been making headlines, VR will continue to enhance the purchasing/leasing experience for purchasers and lessees. This technology advancement allows prospective tenants and homebuyers to walk through a property prior to purchasing it.
- Personalized Recommendations - A game changer for current marketing and advertising trends, personalization will continue to make its mark in 2020. As real estate agents continue to make recommendations for their clients, data will help them make better personalized recommendations under the right platforms. This will help make predictions about what the homebuyer wants even if it hasn’t explicitly been discussed previously.
They’re Settling For Less
Millennials have become very interested in quality over quantity. According to recent data, they’re settling for homes in the 1,700 square foot range in contrast to empty nesters and baby boomers looking to downsize who are buying homes around the 1,900 square foot range. They’re interested in making the live, work, play balance part of their everyday lives and walkability has become a strong desire of theirs.
One of their top priorities is to be close to businesses and restaurants/bars. However, many are forced to settle again as they find that urban areas don’t fit within their budget. Alternatively, they’re moving to suburban areas which unfortunately puts them further from their workplaces. Since Millennials are itching to become homeowners, they’re willing to settle in areas where they can have more space in more desired areas such as their kitchens and other spaces where they will need room to grow.
They’re Putting Less Than 20% Down
With the increased cost of living and expenses, Millennial Buyers are forced to put less than 20% down on their home purchase if they want to move out which means they have to pay private mortgage insurance (PMI) which ranges in an additional 0.5% & 1.5% of the home’s value. Is it worth the sacrifice in order to put less money down?
Millennials will continue to make the home buying process unique in the coming years as they strategically revolutionize the real estate market. Real estate agencies will incorporate more technology into their companies and create a better experience for those looking to purchase a home.
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