As millennials continue to mature, earn higher wages, and increase their purchasing power, so does their ability to influence the status quo. From social norms to political issues, millennials have effectively advocated for changes that can be broadly felt in our lives today. The same can be said for their influence on the real estate market, which millennials have recently entered in great numbers. According to the 2018 Home Buyer and Seller Generational Trends study from the National Association of Realtors, millennials held the highest share of home buying activity out of all other generations for the fifth consecutive year. However, realtors are discovering some features that appear high on the millennial home buyer’s wish list are quite different from what they’ve come to expect from other generations. These splurge-worthy features are redefining the meaning of luxury in homes.
The experience economy. Unlike generations before them, millennials place a greater value on experiences than material good. Instead of splurging on a designer handbag or expensive watch, millennials are far more likely to treat themselves to a day at the spa or a memorable night out. Their interpretation of luxury is closely connected to enriching their lives rather than amassing material goods. This translates into the real estate market in a variety of ways.
Less space, greater functionality. Millennials tend to prefer smaller homes with fewer rooms, but want an inclusive living area large enough to share with friends and family. They are willing to sacrifice square footage for artisan craftsmanship, notable architectural design, versatile floor plans, and open concept living. They would rather have a little of something they love than a lot of something they feel is only average.
Smart homes. Digital connectedness is extremely important to tech-savvy millennials. Fast internet access, smart appliances, and homes that are networked for AV systems, security features, thermostats, and voice-controlled features are high on the millennial shopping list. While these features may seem extravagant to older generations, millennials have grown up with and relied on digital technology most, and in many cases, all of their lives.
Think green. Protecting the environment is an important cause for the millennial generation. Therefore, it comes as no surprise that they want their home to be as environmentally friendly as possible. Millennial home buyers are quite savvy when it comes to knowing what to look for. Location, walkability, sustainable building materials, energy-efficiency, and LEED certifications are a number of green features that millennials would like to have in their new home.
Engaging communities. Millennials yearn to feel connected to their community. That is why so many of them are seeking homes in urban environments where there are often greater opportunities for community involvement. It’s important for many millennials to live in a neighborhood where nearby gathering spots are plentiful. Parks, festivals, pop up shops, and local cafes and restaurants are ideal settings to experience their neighboring community in meaningful ways.
The great outdoors. Greenspace, both public and private, will be high on the millennial home buyer’s wish list. Millennials have a strong desire to extend their living area beyond the physical walls of their home. Balconies, courtyards, and rooftop decks are highly sought-after features in their home. Nearby parks and biking and hiking trails support their active lifestyles and provide even more opportunities for millennials to interact and connect with their community.