Thursday, July 9, 2020 / by Jeff Stoffel
Millennials are the largest generation in U.S. history, and their collective lifetime spending power is estimated at a whopping $10 trillion. Analysts predict the mega-generation will influence industries including real estate for years to come.
A few ways millennials are impacting real estate these days:
- They prefer to own, not rent. Contrary to popular belief, 53 percent already own homes — and 88 percent of those who don’t wish they did.
- They switch homes frequently. Millennials keep their homes an average six years before selling, compared to 10 years for other homebuyers.
- They optimize technology for house hunting. In 2017 58 percent of millennial buyers found their new homes via mobile device.
- Half prefer new homes. Analysts say many lack the time and/or money to conduct their own renovations and repairs, often due to crippling student debt.
- They appreciate specific home features. Preferences include big kitchens, open floor plans, already-updated kitchens and baths, home offices, energy-efficient appliances and new technology such as smart home products.
- They like the suburbs. Fifty-seven percent of homebuyers under 36 chose suburban life in 2017, while 15 percent chose small towns and 15 percent cities.
- Single women are buying. Thirteen percent of millennial homebuyers in 2017 were single women; only 2 percent were single men.