We can all agree that 2021 was an interesting year in real estate. East Central Indiana experienced record-breaking home sales. Much of the market was driven by low rates, low inventory, and strong millennial home buyers. With millennials being the primary driver of purchases many people are wondering what do millennial home buyers want in a home.
Our phones are ringing off the hook with sellers wondering if they have missed the market and with buyers wondering if there will be houses coming on the market. Sadly, we don’t have a crystal ball but we do have decades of experience under our belt. The American Heritage Realty team believes the market will remain strong in 2022. Yes, the rates will likely rise but, they will still remain overall competitive if we take a historical view of rates.
Whether the rates are higher or lower, home sellers want to sell their homes quickly and at competitive sales prices. So, home sellers should care about what prospective buyers want in a new home. 2022 and beyond millennials will be the primary home buyer and understanding their wants and needs can help you make your home more competitive.
Millennials
Millennial Home Buyer Trends
Experts believe millennials will become the richest generation in American history as baby boomer parents and grandparents transfer trillions of dollars in wealth. It is also true they have increased debt including massive student loan debt. However, it is expected millennials have the ability to get out of debt and buy houses with their inheritance.
Clever Real Estate recently conducted a study on millennials and uncovered a variety of interesting information.
Report Highlights:
- 90% of millennials would buy a house sight unseen, a 10% increase from 2021.
- 92% of millennials have some debt. Of those, 70% have more than $10,000 in debt, and one in three owe more than $50,000.
- Nearly one-third of millennials (31%) plan to live in their homes for less than five years.
- As millennials spend less time at home, they want smaller homes — 1,700 square feet on average, compared to 2,400 square feet a year ago.
- Millennials (82%) are more likely than boomers (62%) to purchase a fixer-upper, but 1 in 4 who do so regret it.
So, does this information tell us anything about what millennial home buyers want in a home? We think yes!
Smart House
What Millennial Home Buyers Want In A Home
Millennials are having fewer children, enjoy traveling, love technology, and like being active. All of these factors play into what they expect to find in a new house. We’ve come up with our list of what millennial home buyers want in a home.
- Smart Home Conveniences – younger buyers expect some smart home features such as thermostats connected to their smartphones. This is a very affordable and easy upgrade a seller can make before listing their home.
- Move-In Ready – HGTV ushered in many millennial buyers wanting to tackle home renovations however, we’ve found more than a quarter regret buying a fixer-upper. When given a choice buyers will pay more for an updated modern home over a home that needs considerable updating. With the increase in home improvement materials cost, many buyers are looking for move-in ready.
- Garage Storage – Consumerism continues to fuel the American economy and the result is people have a lot of stuff. They need a place to put their stuff and this has them looking for homes with plenty of storage and garage space.
- Eat-In Kitchen – This trend has not gone away for years. Open floor plans with an eat-in kitchen is a feature buyers are looking for in a new house.
- Smaller Square Footage – After decades of buying bigger and bigger, millennials are not home near as much as Gen X and baby boomers. They want to travel more and clean less. Some experts report millennials to say 1700-1800 square feet is the ideal size. They are still interested in 3 bedrooms to accommodate working from home but, remember they have fewer children so 3 bedrooms are often enough.
- Community Amenities – Younger buyers not only love traveling, they also enjoy being outside more. They want to be near parks and nature. If your home is near a park we will want to highlight this in your listing!
- 1st Floor Bathrooms – Millennials also enjoy having friends and family over. After being locked up alone with the pandemic, we see a trend in having friends over for game night and more. This trend has driven up the interest in half bathrooms on the 1st floor.
- Sustainability – This generation cares more about the environment than any previous generation. They are looking for environmentally friendly materials in a home and eco-friendly heating.
These are our top 8 things millennial home buyers are looking for in a new house in East Central Indiana. If you are interested in selling we can help you highlight these features to sell your home quickly and competitively.
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Whether you are a buyer or a seller there are many questions to ask and things to know about real estate. We are the people you know and the agents you trust. We have more excellent home buying and selling tips and tricks on our blog.
Our agents are here to help you! Get in contact with an agent you can trust to find you the best deal. If you are interested in purchasing a home or selling a home in East Central Indiana, learn more about American Heritage Realty. We have been in operation since 1977, and we have the expertise and technology to help you buy a home or sell a home. Get to know us!