Yahoo Finance US Real Estate Market Short 7.2 Million Homes — 8 Things Younger, Wealthier Millennial Buyers Are Looking For
The real estate market is starting to ease up a bit. Yet, mortgage rates are still hovering around 7%, and home prices are still high — mostly driven by the lack of inventory.
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While the number of homes for sale has been recovering from pandemic-era lows thanks to a surge of new construction, a new Realtor.com analysis found the market is still missing up to 7.2 million homes, the result of more than a decade of underbuilding relative to population growth.
And for millennial homebuyers, the road to homeownership can be particularly difficult, as this cohort is already dealing with several financial responsibilities including having a family, resuming the payment of student loans and taking care of aging parents.
Against this backdrop, many wealthy millennials still have a wish list of what their ideal home should be and the features it should offer.
Setup that supports remote work
Something that wealthy millennials are looking for in homes today is a setup that will support working from home, said Seamus Nally, CEO of TurboTenant, adding that even for those who don’t work from home full-time, it’s become clear working from home even occasionally is going to be the norm for most jobs.
“Wealthy millennials typically are looking for homes that either have designated office spaces or that have additional rooms that can be transformed into office spaces,” said Nally. While less wealthy millennials are looking for homes with the exact number of bedrooms they need, they still seek extra space because they can more easily afford it, he added.
“They want their home to support their lifestyle,” Nally clarified.
Location, location, location
Location remains a priority, especially as it connects to the lifestyle millennials currently live or aspire to live as their lives evolve, said Nicole Beauchamp, NYRS, MCNE, CBR and associate broker at Sotheby’s International Realty.
Beauchamp said she sees with millennial clients “a battle between space, but also the importance of being close to restaurants and other lifestyle amenities — including health and wellness-related.”
Tech integration and eco-friendly features
Smart home features are highly valued for that cohort, including advanced security systems, smart thermostats, integrated home entertainment systems, lighting and home automation that can be controlled via smartphones or other devices, said Leah Robinson-Christian, associate broker at Engel & Völkers.
In terms of eco-friendly features, Robinson-Christian — who is currently working with several wealthy millennials — said there’s a growing trend toward sustainability. For instance, she said that this includes energy-efficient appliances, solar panels, sustainable building materials and designs that minimize environmental impact.
Privacy and security
High-end security systems, gated communities or gated properties, and locations that offer a sense of privacy and exclusivity are often sought after, added Robinson-Christian.
“While this can be more challenging in the city, it’s a biggie and almost a requirement,” she added.
Modern design and open floor plans
Contemporary design with open floor plans, large windows for natural light, and minimalist aesthetics are often preferred. Flex spaces that can be easily adapted for different uses, like home offices or music rooms, are also desirable, said Robinson-Christian.
Beauchamp echoed the sentiment, saying that a home with modern updated design is key, and there is often little appetite for dated design.
Investment potential
Many wealthy millennials view their home not just as a place to live, but also as an investment. As Robinson-Christian explained, millennials realize their home is not their “forever home” that they will raise children in, grow old, and have grandchildren visit one day.
“It’s truly become one of their many avenues for investment,” she said, adding that they might look for properties in areas with high potential for appreciation.
Community and social connectivity
Another factor that is part of the decision-making process is the importance of being part of a community that reflects their social and ethical values.
“This can include neighborhoods with a strong sense of community, or housing developments that offer communal spaces and activities. This is one of the things that is making a community like Town of Trilith in Fayetteville, GA so popular right now!” Robinson-Christian added.
Luxury amenities
Luxury is also top of mind for wealthy millennial homebuyers, including high-end finishes, top-of-the-line appliances and luxury amenities such as swimming pools, home theaters and wine cellars — which are often on the wish list, said Robinson-Christian.
“Millennials realize that luxury is in the details, so they are looking for those details in a home,” she added. “While they may not be looking for all the crown molding, wainscoting, and coffered ceilings that baby boomers love, they are looking for high end appliances like Miele, Viking, Wolf, etc.”
In addition, she said that marble, site-stained hardwood floors and custom lighting are also sought after. “And then the smaller details such as the type of floor vent covers. While small and almost something that could be overlooked, this type of detail can turn a millennial away from a builder completely,” she added.
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