The Millennial Homebuyer

millennial dreaming of a home

One of the main reasons people buy a new home has to do with life changing circumstances: job relocation, new family, or downsizing. According to CoreLogic, millennials (currently 25-39 years old) are now the fastest growing segment of home buyers and they are changing the home buying process. Faced with a terrible job market when they left college, this group has waited a long time to make this purchase and will use all technology available to research before they purchase. On your next real estate investment flip, part of your homework is to understand who is buying and where they are buying.

Gone are they days of using the classified ads and a realtor. The National Association of Realtors reports in Homebuyer & Seller Generational Trends in 2019 that 81% of older Millennials found their home through a mobile app. They can even pre-qualifiy online. Given this, you will need to leverage technology and social media to reach this audience.  Realogy and Amazon have partnered up to offer TurnKey Home Purchase Service, where buyer and realtor are matched up like a dating app.

From a Forbes article on the millennial home buying process, Anna DeSimone, author of Housing Finance 2020 and a housing advocate says millenials are seeking a home that reflects their lifestyle and values –  a walkable neighborhood with good schools and area amenities like a shopping and a nearby park. For the millienial with the expanding family an open kitchen plan, lots of storage, a laundry area, and a large yard or play area, garage door openers and a ring doorbell are strong selling points.

Because this group has waited so long and save for the biggest purchase of their short lives thus far,  you could add an incentive to make the process easier such as a smart devise or an engery-saving themostat.