The Millennials are moving into the category of homeowners. The housing market doors are reopening and Generation Y hears an opportunity knocking.
With rental rates rising, inventories diminishing and low interest rates, purchasing a home is no longer a distant dream for Millennials. According to a Better Homes and Gardens Real Estate survey of 1,000 18 to 35-year-olds, this new generation of homebuyers are “seeking customized purposeful homes to fit their values.” They are showing the most interest in open floorplan designs that utilize space efficiently. Millennials are leaning towards custom homes that deviate from formal dining rooms and replace them with extra study, storage and kitchen space.
New Generation, New Technology
Millennials, which consist of 95 million ‘Gen-y’ers, outnumber Baby Boomers by well over 14 million. This growing population means tastes are changing. As a result of the evolution of technology, 90 percent of this generation are searching for their homes online. They are seeking out energy efficient options that add a lasting value to their new home. With the advantage of making a first time home purchase, they are investing in the latest technology and home appliances to save money on water and electricity.
The Easy Option
Townhomes offer a convenient turnkey option, which young professionals see as a major plus. No maintenance, no problem. Fourth quarter 2012 Census data of Starts and Completions by Purpose and Design< show a significant increase in townhome construction for 2012. Construction rose from 13,000 starts in the fourth quarter of 2011 to 17,000 starts during the same period in 2012. Townhomes are also a less expensive option, which is an added benefit for Millennials. Purposeful supersedes luxury for this generation, making customization and attached living great options.March of the Millennials.
Millennials are sending their message loud and clear that new custom homes are in their sights. Wish list items include open layout, new technology and easy living. As the Millennials are becoming of age, they are moving up and moving in.