Who are the millennials? They are the people born between the early 1980s to the early 2000s. This generation is also referred to as Generation Y. Millennials have had a very different experience in life than any prior generation. Immersed in technology, many are very well-to-do, better educated than their parents, more savvy about money and work-life balance, and are more selective about housing.
Millennials are shaping the housing market in many ways. For example, research confirms that 20% of all millennials changed their housing between 2016 and 2017. This had a huge impact on real estate trends. Here’s what you need to know if you are looking to invest in housing that appeals to Generation Y.
• First, they don’t make hasty decisions about their housing. Millennials cut their teeth on the internet making them better able to command and manipulate information than previous generations. They do their homework before investing or making a financial commitment (particularly one as substantial as housing) whether it be rental property or ownership.
• Interestingly, there are many millennials (as many as one-third according to some estimates) that still live with their parents! Another factor that comes into play is the fact that many millennials also carry large student debt so they are concerned about affordability.
• A third housing trend for millennials is they tend to prefer living in historic districts versus the McMansions of their parents! But, even though the historic housing may be stately and older, this generation wants lots of amenities in the form of outdoor dining facilities or rooftop lounges. The housing should also have up-to-date features like free wi-fi and smart home appliances.
If you are considering stepping into the housing market with an investment or are interesting in purchasing or updating a multi-residential property, it is best to know your audience in advance. The market for providing housing to millennials is lucrative and wide-open so jump in while the investing is hot!