A prominent and attractive demographic market that is dominating the real estate market today is millennials, making them one of the most influential consumer groups today.
They are those who were born between 1981 and 1996, currently those who are in their mid- 20s to late 30s. They outnumber their GenX counterparts and studies have shown that they have established themselves as more financially-capable in terms of investments in their early professional careers.
In Australia, it shows that one in three millennials have their own homes with the rest of the age group expected to follow suit in the next three to four years.
It won’t be a surprise to find some millennials checking out your listing during an open inspection.
Here’s what millennial buyers look for in a home.
Property location
Millennials prefer living in areas that cater to their identity and interests. They are less likely to spend their days off at home compared to the older generations. They also value experiences such as travel or vacations and health and wellness over wealth and material possessions.
Locations that are attractive to millennials are those with easy access to the central business district (CBD) such as local shopping centres, transport links, and one with an active nightlife scene highlighted by social bars and modern cafés.
Core features and amenities
Millennials are more likely to purchase a townhouse or apartment rather than a traditional detached home unit, thanks to the increase in demand for high-density housing units.
From swimming pools, kitchens, entertainment areas, gyms, round-the-clock security, green spaces, smart home systems, and recreational spaces millennials prefer properties that offer these features. For the millennial market, it would also be worth knowing that there are more single female buyers compared to single males below the age of 35.
Investment options and opportunities
Since millennials are not the usual homebody types, they prefer properties that can potentially become rental investments. Others take advantage of the increasing popularity of affordable housing outside suburbs, develop the property as rental units, and use the proceeds as payment for a different unit where they choose to reside.
It also allows them to acquire affordable properties, earn money out of rentals, and generate enough equity to buy property in areas they want to live in and augment their income to sustain their active lifestyles.
What would attract millennials the most are the options made available to them that would appeal to their interests. Providing them with property options such as rental investments would be highly appealing, as well as properties that require low maintenance, outdoor spaces with less upkeep effort and costs, and a great location.