Millennial homebuyers make up a large percentage of today's buyers in the real estate market. According to the U.S. Census Bureau, there are currently 92 million millennials between their late 20s to late 40s in age. In the 30-plus segment, 35% earn more than $125,000 per year and 51% earn between $55,000 and $124,000 per year. On average, this group is purchasing homes priced between $300,000 and $400,000. These millennial homebuyers are looking for homes with at least 1,800 square feet, 3-4 bedrooms, and 2-3 bathrooms for growing families.
While younger millennials are also buying homes, they are looking for properties closer to $250,000. In some cases, younger homebuyers may seek seller financing or discounts or apply for government-sponsored mortgages through FHA, VA, and HUD with lower down payment requirements.
According to the 2021 Home Buyers and Sellers Generational Trends Report, millennial homebuyers have specific interests that drive sales. Take a look at some categories that top the list.
In the 2021 real estate market, millennial homebuyers are looking for homes that average 2,400 square feet of living space, up from 1,800 square feet just one year ago. The need to establish a remote home office has impacted many millennials in the workforce. Needs for a home office area, a large kitchen, and extra family spaces have led to a demand for larger homes.
Older millennials want homes in the suburbs with large backyards and lots of greenery. With growing families, millennials in their 30s want outdoor areas where they can entertain and their kids can play. Younger millennials still prefer urban city areas where condo terraces provide a great city view and space for entertaining.
In some suburban developments, large backyards are hard to find. Many builders are creating outdoor living spaces in large side yards with privacy created by a neighbor's fence or wall. In more rural areas, it's easier to find larger properties with mature trees, large backyards, and extra amenities like barns, sheds, and mountain or lakefront views.
Homes with outdoor amenities like swimming pools, hot tubs and jacuzzis, outdoor kitchens, and firepits are very appealing to millennial homebuyers. In many areas, home builders have focused on these outdoor amenities to intentionally attract millennials looking for new home construction. Market studies show that millennials are willing to spend considerably more money on these outdoor amenities.
Home Fitness and Wellness
For many millennials, fitness and wellness are daily active pursuits. The millennial generation has a strong interest in protecting the environment and maintaining a healthy lifestyle. Organic gardening, composting, healthy cooking, daily exercise, and good air quality rank high on the list of importance. Home fitness spaces, accessible hiking trails, and outdoor meditation areas are top priorities.
Smart Home Technology
Millennial homebuyers are well-educated and experienced with computers and smart home technology like home security systems, automated lighting systems, voice-controlled appliances and fixtures, and surround-sound music systems. Most millennial buyers consider smart home technology a necessity that's very familiar to their way of life.