With millennials coming into the home buying business, they are doing it differently than the past generations.
A big difference in the millennials vs the older generations, they using technology for everything! They're finding the homes/properties online, as well as finding and communicating with real estate agents on there. The areas and types of houses in which
they choose is also different, choosing more of a more suburb area than an urban, as well as favoring larger or more upscale properties.
With 99% of millennials using technology to find basic information, and 58% of them finding their homes through their phones, it has changed the real estate agents purpose. Now, with all the information online, the real estate agents purpose for giving
the information out, is now useless and their main purpose is now the negotiation skills they hold, relationships with other brokers, and their ability to keep up with the times with marketing strategies and processes.
They are also more likely to text when discussing homes and such, leaving phone calls for more urgent matters.
Another adaptation to technology is how agents list homes, leading agents and brokers to introduce features like live streaming and video in lieu of traditional photographs. Videos give better views of the property to those interested.
Area and Home Types:
Millennials are now skipping the smaller starter homes that range between $150,000 - $250,000 and are going straight for the $300,000+ homes.
47% prefer to live in the suburbs as opposed to the big city or rural areas.
Apartment rates jumped 1.3% from March - June of 2019, which is unusual, as it normally jumps that much within a years time.
Though most millennials make less than their parents, they waited long enough to be able to save and afford a house of their own, in which they look to keep and live in for a long time. Even though they don't make as much as their parents, the
minimum wage has consistently increased yearly since 2011. Creating a "move-in ready" house more in demand than any fixer uppers or anything else.
With the changes the millennials brought to the market, it is important to adapt to those and create a new market, whether it is different than the typical one. Adaptation and revolution is the way to surviving anything, even in real estate.