In 2018, 34% of homes bought in the United States were by Millennials. Millennials may be deemed as lazy and entitled, but they are redefining the real estate market. They are shifting the paradigm of real estate business from what the baby boomers had.
Every generation is responsible for making significant changes in the way business is done.
Millennials are no different. Although there have been fears as to how well Millennials are buying homes, which are some percentages less than the previous generation—the baby boomers—still they presently define the terms and conditions in real estate.
Millennials are people born between 1981 to 1996. They are often called the Y-generation. Their effect on real estate in Dubai and other parts of the world is well documented.
In this article, we would be highlighting three ways millennials are changing the real estate market:
1. Millennials are changing how real estate agencies do their marketing:
The average millennial wont spend time on the internet searching for information about a house before making contact with a real estate agent. In a study done in America, most Millennials test a product 67 times before settling for one. The amount of time and resources they put into researching before any buy has shaped how agencies market.
Online marketing, crisp and clear pictures, videos, and live stream are now regular marketing tactics for real estate agencies.
Dubai real estate agencies, aware of the changing times, are putting effort into making the process of buying home tech-savvy, fast and efficient for homebuyers.
Technology is a significant part of the millennial lifestyle. The excessive use of technology by Millennials has encouraged more tech startups in the real estate market change how agencies market and relate with customers.
2. Millennials want green-friendly home. The demand for eco-friendly homes, energy saving houses that reduces the carbon footprints in the world has become a trend among millennials. They want houses where they would pay less for energy bills, would save more energy and are eco-friendly. For real estate developers, the standard is no longer bigger homes only, but homes that are green and energy conserving.
3. Millennials want big kitchens:
Although this used to be a factor among baby boomers, it has become a significant factor for millennials. Most millennials see the kitchen as a place to bond with families, not just a place for preparing food. They want bigger kitchens where they can meet and hang out with families, sometimes preferring the kitchen to the living room.
4. Millennials are demanding for open floor houses.
While the previous generation wanted more rooms--even though smaller--Millennials wish for open floor houses with each room leading to the next. The sense of togetherness that open floor houses bring is a significant reason for this. Coupled with this, they also want to live in suburban areas, close to where they work. New projects in DAMAC, for example, are perfect places for these tech-savvy young people.
5. Millennials want new homes:
With millennials, buying their first homes are stepping stones to the dream house they want. While older people buy houses and use them for ten years, the average millennial uses a residence for six years and buys another, often bigger ones.
For real estate agencies and developers, they know they have a customer who would most likely buy another house in six years or even less. Also, most millennials would instead buy a slightly more expensive new home than buy 'an old, fixed house' where they have to make repairs. Their demand for new homes means more new houses to be built and sold over the next few years — more money flowing in the real estate market.