Millennials are having a big effect on the world in which we live.
After all, just take a look at society. It has undergone a huge upheaval over the past decade or so, and most of this has to be because of this new generation bursting onto the scene and demanding everything that they want and need.
Millennials are known for carrying out extensive research before they come to any final decisions, and this is also the case for most of their purchases, including property.
This is just one way they are forcing a shift in the housing market. They expect plenty of information available to them when they request it from the real estate agent.
But that isn’t the only way this young generation is having a big effect on the property market. You might think that their effect could be a negative one – after all, they often end up with a lot of bad press from the media – but that isn’t always the case.
Read on to find out how this savvy generation is changing the property market.
Millennials Make Sellers Wait
Most millennials know that they aren’t going to be in a position to buy a property anytime soon. That’s because house prices have been creeping up over the past few decades even though the average wage has stayed around the same.
As a result, the millennials have all come to age at a bad time to purchase property.
Even though most have set their sights on becoming homeowners, they are still happy enough to wait it out and give themselves plenty of time to work on their home loan eligibility and to save.
So, this generation isn’t in such a rush to get on the property ladder, unlike the previous generations that came before them were.
This means that sellers are needing to be very patient these days – there aren’t enough buyers out there since most millennials are biding their time.
Related: 4 Questions to Ask Yourself as a First-Time Homeowner
They Are Dragging Down The Average Home Value
As millennials are taking longer to come to the property market, there is a large chunk of adults that are happy enough in rented accommodation right now. And that means that there aren’t too many people out house hunting.
This will, over time, bring down the value of most properties ever so slightly. That’s because there are too many houses on the market and not enough potential buyers.
So, it is very much a buyers’ market at the minute, which hasn’t always been the case, and they are able to be quite demanding when it comes to finding their ideal home.
Millennials Do All Their House Hunting Online
Remember back in the day when you had to look at all the different adverts in real estate agent windows to find a new house? That isn’t the case anymore as most properties are listed online as well.
In fact, all millennials will only ever look online and hardly any will think about visiting a real estate agent in person.
This reliance on the internet means that most homeowners are changing the way they market their house. Instead of paying to have it listed in local newspapers, they are instead making sure that their realtor adds it to online brochures and search sites.
They Expect Perfect Homes
Back in the day, people used to look for properties that were in need of some decorating, repairs, or general maintenance.
Even though it meant that they would need to carry out this work when they moved in, they still benefited from buying a property with a lot of potential for a lower price than the market average.
Plus, it gave them a great chance to do up the home exactly how they wanted it and put their own personal stamp on it.
However, this isn’t the case with millennials. They would rather spend a little bit more to get a property that is completely ready for them to move into and would not require any decorating.
After all, they don’t have any spare time to do any decorating or maintenance. They are too busy in the evenings and at the weekends working on their side hustles and socializing!
The Suburbs Are Still Proving To Be Popular
When baby boomers were buying their very first homes, they all had their sights set on the suburbs. Even though it meant that they would have to commute to their jobs in the center, they were all won over by the quiet life out on the edges of town.
They saw it as the best of both worlds as they were within striking distance of the city center and the countryside, so saw it as a great location for both work and play.
Well, this is one of the few things that millennials and boomers actually agree on – living in the suburbs is much better than living in the city!
It currently looks like millennials are also eager to snap up houses that are in the suburbs. Maybe this is a sign that the generation is ready to grow up now?
Their Parents Help Close All The Deals
Most millennials are the sons and daughters of baby boomers. As they have proven to be extremely successful throughout life, there is no wonder that boomers have great experience in closing deals.
And this is also the case when it comes to closing deals in the purchase of property.
So, lots of millennials are relying on their parents to help them seal the deal. This makes sense when you think about it, as lots of boomers will have already been through some disappointments when they have previously tried to purchase property.
By helping their millennial children, they will know what to watch out for so that their kids don’t also fall into the same pitfalls.
They Don’t Define Owning A Home As Permanent
If you ask anyone in the baby boomer generation, they will tell you that buying a home should be permanent. Or if not permanent, I think they will agree that you should expect to live in the house for quite some time to come.
But millennials don’t share this mindset.
In fact, most of them only expect to live in their purchased property for four to five years max.
This is a lot lower than what the older generations expect – most older people tend to live in a new home for a minimum of ten years before moving out.
That means that millennials should expect to go through a lot more houses than what their parents did. And this might be another reason why millennials expect their homes to be perfect when they move into them – they might not be living in it long enough to do it up to a high standard.
Energy Efficiency Is Key
Millennials are extremely conscious of the environment and go to some extra measures to ensure that their lives are as green and eco-friendly as can be. So, there is no wonder that most of them are only interested in buying property that is energy efficient.
They expect their new home to be fully insulated and to already be kitted out with an energy efficient fuel option.
If they view a house and realize that it might not be as green as they would like, then they could simply take their search elsewhere.
As you can see, the millennials are changing the world of property in some very big ways! Who knows how these trends will develop in the future?