Millennials, or Generation Y, differ from other generations in many ways. They have different priorities from those of older generations during their time. For one, many millennials invest in travel and experiences instead of building a career early on. They are forgoing marriage, even child-rearing. Millennials are also revolutionizing the housing market.
Gen Y is today’s most active real estate investors. They use technology to find and purchase their own homes. But instead of buying big houses being sold by the past generations, they are going for properties that will serve them multiple purposes in the long run.
The following shows how millennials are changing the housing game.
Before, buying a home meant buying a single-family house where you will own your own property. People value privacy so much that they are willing to take out a mortgage just to enjoy a beautiful home with a picket fence and a sizable backyard. They don’t like sharing the same building with other people, thus their willingness to pay more for a privately-owned property.
This often means buying houses that are a lot farther from the city proper. But these days, it can be challenging to find an affordable home located near business centers and other in-demand amenities. Most houses offered for sale are located in newly built communities.
But millennials actually like the idea of coliving. They don’t mind sharing the same building with other people. They actually appreciate housing options that have common spaces.
This is the very reason many millennials are buying their own condos. They don’t mind sharing amenities like gym facilities and swimming pools. They get to enjoy their own privacy while reaping the rewards of round-the-clock security.
Many millennials prefer condominiums because these are often closer to business centers. They get to nurture their modern lifestyle, including working remotely. They get to work, have fun, and unwind without leaving the city.
Aside from living in condominiums, millennials are also taking advantage of other additional services and products offered by different providers. We are not simply talking about the free WiFi connection offered by some coliving spaces. This also includes housekeeping and laundry services.
This is not to say that millennials are not capable or unwilling to live by themselves. In reality, more millennials are now living alone. They simply enjoy having someone over and help them maintain a clean house instead of adding household chores to their to-do list.
Millennials don’t mind paying for experiences, including services that will make their lives easier. They are already a busy bunch trying to provide for their needs and their future. If there are benefits worth paying for, they won’t hesitate to grab them if they can afford them.
This is why many residential building owners and managers offer numerous benefits to their tenants and homeowners. They do this to attract millennials who are willing to pay for those extra services. This way, they won’t need to constantly look for customers to fill their vacant units.
The pandemic only added to the financial headaches many millennials are currently facing. Many of them can barely afford a home due to their student debts and low credit scores. With the pandemic adding to their plate, many were left having to push back their homebuying after prices of homes plummeted.
Don’t forget about the fact that there is a current housing crisis in today’s market. Since more people are buying houses even though there are fewer houses for sale, many millennials change their plans and continue renting in the meantime. Some cannot risk buying a house in today’s market because of the amount of competition and low numbers of properties for sale.
The rise in prices of houses on the market has left some millennials with no choice but to skip a home purchase for now. They will have to continue renting while saving more for a down payment. They know that they are better off saving a down payment when buying a house than face the consequences of little to no down payment.
Millennials are known for their dedication to technology. They are always online, looking for information and the things they need. They are also using technology to find mortgage lenders, go house-hunting, and basically streamline the homebuying process.
They are using technology to communicate with sellers, real estate agents, and mortgage lenders. They take advantage of virtual house tours before checking houses for sale in person. Millennials are also paying their mortgage online and are signing important documents virtually.
These are but some ways millennials are changing the housing landscape. They embrace technology, coliving, and renting. They are willing to pay for experiences and have other priorities compared to other generations. We can expect millennials to continue leaving a lasting impression on the real estate market.