Millennials and Home Ownership

Millennials are now getting to the point where they’re settling down and considering big-ticket purchases, the main one being a home. According to Bloomberg Business, by about 2020, they will represent the majority of the workforce with an annual spending of $400 billion, and even though they seem to still value the idea of home ownership, don’t go ahead and assume they will go about it the same way their parents did.

This generation grew up right in the middle of the perfect storm that was the Great Recession. Because of this, they seem to be more careful with their spending decisions, especially incredibly large ones. With a somewhat cautious mindset as a result of stagnant wages, rampant unemployment and lingering memories of the housing crisis, Millennials seem to be opting for rentals over home ownership at the moment.

When they do decide to settle down and make that major investment, the qualities they’re looking for in a home are going to be dramatically different than in the past. Instead of dreaming of owning huge estates, they will be seeking customized and purposeful homes to fit their values and needs. In a recent Better Homes and Gardens Real Estate survey, 77% of Millennials interviewed said they preferred an “essential home equipped with the tech capabilities they have grown accustomed to, as opposed to the stereotypical luxury homes preferred by many of their parent’s generations.”

This age group puts more emphasis on how spaces will be used, home automation, and ecological sensibility when choosing appliances and features. As Better Homes and Gardens sums it up, “lifestyle and a strong sense of community are definitely what counts.” They’re looking for homes that are tailored to how they would like to live…which seems to also result in a more responsible way of living.

 

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