Top 5 Predictions for Millennial Home Buyers in 2018
Millennials have become a huge group of home buyers in the real estate market. Whether home sellers like it or not, one of the best ways to sell your home is to appeal to the millennial audience. According to Zillow, in 2016 millennials accounted for 42% of all home buyers. As a millennial and Real Estate Broker at Avenue Properties in Seattle, here are my top five predictions about millennial home buyers in the coming year:
1. Millennials will Buy Bigger and Rent
We are in the “sharing economy.” With the rise of Uber and Airbnb, there is no doubt that the same thing will start to happen in home ownership. In 2018 you will see many millennials continue to buy homes that are just a bit bigger than what they need with the intention of renting some of the home to help cover the monthly mortgage. I’ve already seen this happen multiple times in 2017 and I don’t see the trend slowing. If millennials have the money — which more and more do — they will spend it and seek a renter to help cover their costs.
2. Millennials will Research Limitlessly, Act Decisively
Millennials have quickly earned the reputation of being the most informed group about their purchases due to the abundance of information they find on the internet. Home buying is no different than shopping for a new bag or t-shirt. Millennials are a group of researchers that know the facts and make quick decisions. In 2018, this group will continue to research and decide what to buy quickly. It won’t be unheard of for them to buy the first home they see, unlike some other generations that want to see every option in person before making a decision.
3. Millennials will be Drawn to Move-in Ready Homes
The millennial population not only knows what they want, but they also know they don’t want something that requires a lot of their time or work. Sellers that want to appeal to this audience should think about making their home as move-in ready as possible. The biggest competition for sellers is new construction, which millennial buyers are drawn to because there is usually no work necessary in the first two years of ownership.
4. Millennials will Buy Multiple Homes As Investments
Millennials have more money than many previous generations and they are driven to own more than one home. While many generations before were only able to afford one home at a time, millennials see owning multiple homes as smart and attainable. These won’t be vacation homes though. For this group, a first and second home are both an investment and need to be rentable so if circumstances change they can rent the homes right away. While millennials will be less likely to stay in their homes as long as previous generations have done, they will work to acquire more homes that can be great investments for building wealth.
5. Millennials will Decide to Purchase based on Location & Amenities
Yes, they love to live where they work and they love their pets (as do I). Millennials want a neighborhood bar, a cool coffee shop, and a place to walk their dog. In 2018, the trend will continue — millennials will buy with commute times and pet accommodations top of mind. In addition, you can be certain that when given the option millennials will opt for all-inclusive amenities like high-speed internet, the best cell phone reception, and a luxury gym or community theater.
2018 will be another competitive year in the Seattle real estate market. Millennials, one of the largest groups of home buyers, are ready and willing to jump in. These are the five ways I see millennials, myself included, shaping the 2018 real state market.
I’m curious to know if you agree — reach out to me at brennen@avenueproperties.com or @brenthebroker on Facebook, Twitter, and Instagram. If you liked this article, please give it a clap below and share.
