Hands down, the millennial market is indeed a huge one and is regarded as one of the most attractive consumer markets today, especially in real estate.
This demographic is a very powerful and influential market segment composed of those born between 1981 to 1996 who are now at the prime of their lives and establishing their mark in society.
Of course, getting a home is one of their primary goals and are in the phase of their lives where they are inclined to invest in a home.
Statistically, one in three Australian millennials are homeowners, with the remaining ones hoping to get a house within the next two to three years.
Millennials are indeed an attractive market segment. If you consider selling your property and scheduling an open house, you can surely expect millennials to drop by and have a look.
But what do they prefer?
Make no mistake, millennials are keen on their preferences and it is important for real estate agents to understand and know what these are to attract this consumer segment.
One reality, though, is that millennials are taking time to make their decisions due to rising prices and finding the best deals for them would be a wise move.
Area and location characteristics
Millennials have been known to spend less of their time at home during weekends compared to older generations. They have also been known to enjoy and value experiences and adventures against material possessions, and invest in their physical wellbeing, health and travel instead of artifacts or home furnishings.
Also, they find it more meaningful to live in an area that is suited to their identity and interests. For instance, they prefer having trendy hangouts versus a landscaped park.
They desire to have good access to shopping centres, good public transport, etc.
Offering millennials with property options leaning towards the hip, trendy, and edgy are great selling points that would catch their interest.
Property features and amenities
Millennials, according to studies, are more inclined to choose apartments or townhouses instead of stand-alone or detached homes.
Residential complexes that provide shared living amenities such as a swimming pool, gyms, security systems, and rooftop gardens are attractive to millennials.
Here’s a bonus fact.
Single females outnumber single males in this demographic segment, especially among those who are out looking for property to purchase.
Access to transportation
For millennials with families and children, high-density living options do not appeal to them and prefer to have a bit more space for kids to play or wander around.
These millennials are inclined to find options in outer suburbs with detached homes, which is why easily accessible transportation links are critical.
An attractive option is a suburb with good infrastructure and effective transport public system than one with problematic transport systems, infrastructure and facilities.
Rentvesting options
A lot of millennials are taking different paths when it comes to their real estate journeys as many prefer to engage in rentvesting.
This is the concept where home buyers purchase property outside of a suburb they desire to live in, rent out the property and use the rent income to find a rental home in the area they desire to live in.
Another method of rentvesting is for “rentvestors” to get a bigger property and offer some of the available space for rent and save the income for future capital to purchase property in the area they wish to live in.
So, the option for rental capability in a property is a great come-on for millennials, aside from property that demands loess maintenance, great location, access to lifestyle and recreational facilities, as well as with anything that appeals to millennials would surely boost your chances of effectively tapping into this huge market segment.