{"id":2163,"date":"2021-04-07T01:56:00","date_gmt":"2021-04-07T01:56:00","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2021\/04\/07\/what-millennial-homebuyers-want-in-a-home-in-2021\/"},"modified":"2025-03-13T02:37:21","modified_gmt":"2025-03-13T02:37:21","slug":"what-millennial-homebuyers-want-in-a-home-in-2021","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2021\/04\/07\/what-millennial-homebuyers-want-in-a-home-in-2021\/","title":{"rendered":"What you need to know about Millennial homebuyers"},"content":{"rendered":"\n

As a real estate agent, it\u2019s important to understand the needs of Millennial homebuyers when it comes to buying a home \u2014 as these trends will only continue. By knowing more about these potential clients, you\u2019ll have a head start on finding exactly what millennials need and closing a deal quickly.<\/p>\n\n\n\n

In its annual Millennial Home Buyer Report<\/a>, Clever Real Estate surveyed 1,000 people who are planning to purchase a home in the next year about their hopes, anxieties, and the compromises they\u2019re willing to make to become homeowners. Here\u2019s what was discovered about what millennials want in a home.<\/p>\n\n\n\n

They want space<\/h2>\n\n\n\n

Millennial homebuyers<\/a> are typically thought to live in cramped apartments, but the pandemic seems to have shifted their ideas about needing more living space. According to Clever\u2019s report, millennials are looking for homes around 2,400 square feet \u2014 a 41% increase from before the pandemic, when they wanted a home around 1,700 feet.<\/p>\n\n\n\n

With restaurants shuttered, millennials may also be realizing the beauty of a spacious kitchen<\/a>. Sixty percent said they were looking for a large kitchen in their next home. In addition, millennials are currently 24 to 40 years old and may be starting families. For this reason, 43% said they are looking for a space to \u201cgrow into\u201d with their family, and the same percent want a basement in their new home.<\/p>\n\n\n\n

Not only concerned about their immediate family, millennial homebuyers want space to host guests\u201417% want a home with a guest home or mother-in-law suite. Storage is also key\u201461% want a garage in their next home, and 39% said a walk-in master closet is important to them.<\/p>\n\n\n\n

They want good vibes<\/h2>\n\n\n\n

Millennials’ lives of exploring posh social scenes or traveling to far-off destinations have largely been replaced with working from home and ordering take-out. It\u2019s no surprise they\u2019re looking to find how to turn their living spaces into their new oasis. In fact, 20% of millennials want a home with a pool or hot tub.<\/p>\n\n\n\n

As they spend more time in their home or apartment, millennials have learned they need room to breathe \u2014 41% are looking for open-floor plans, and 44% want a home with lots of natural light. Almost half of those surveyed (45%) said they care about outdoor living spaces as well, and 27% prefer eco-friendly and energy-efficient features such as geothermal heating, solar panels, and sustainable materials.<\/p>\n\n\n\n

They need houses they can actually afford<\/h2>\n\n\n\n

While loads of millennials are in the market to buy a home, their down payment savings and ability to pay aren\u2019t exactly huge. Two-thirds of millennial home buyers say they will be unable to afford a 20% down payment on a house. And, saving for a down payment is the biggest barrier to buying a home for 51% of millennials. It\u2019s no surprise, then, that 52% of millennials are stressed and anxious about buying a home, mostly for financial reasons.<\/p>\n\n\n\n

Eleven percent of millennials have less than $1,000 in savings \u2014 although this is down from 26% before the pandemic. For this reason, 56% of millennials want homes under $250,000 \u2014 despite the current average U.S. home value of $266,104. They may also be looking for ways to save, like a homebuyer rebate<\/a> or concessions from the seller<\/a>.<\/p>\n\n\n\n

But, things are looking up. Fifty-seven percent of potential millennial homebuyers have at least $10,000 in savings \u2014 a 36% increase from last year. A whopping 80% said President Biden’s proposed $10,000 in student loan forgiveness would have an impact on their finances<\/a>, and 23% said it would wipe out their student loan debt entirely. This would give them more buying power toward what 80% of them say is part of the American Dream \u2014 owning their own home<\/a>. Plus, interest rates are at historic lows \u2014 nearly four times as many millennials (40%) cited the current low interest rates as the reason they were house hunting.<\/p>\n\n\n\n

They are DIYers<\/h2>\n\n\n\n

Millennials are used to putting their own flavor on things, and they\u2019re not afraid to do the same with their home. Nearly three-quarters (71%) of millennials say they would be willing to buy a fixer-upper<\/a>. In fact, 80% of millennials say they\u2019d consider buying a home sight unseen, and 29% would buy a house after only<\/em> seeing photos or a virtual tour.<\/p>\n\n\n\n

However, keep in mind that this DIY mentality doesn\u2019t translate well to larger home projects and repairs \u2014 like a new roof<\/a>. These projects necessitate experts, and millennials may not have enough in savings to fund these repairs shortly after moving in.<\/p>\n\n\n\n

They\u2019re not as into the city<\/h2>\n\n\n\n

Although millennials have gravitated toward crowded city spaces in the past, the pandemic has changed things. Thirty percent of urban-dwelling millennial home buyers plan to relocate to the suburbs \u2014 likely for cheaper home prices and larger space, among other reasons. With jobs that once tied them to a downtown, millennials are finding themselves working from home and need some personal office space \u2014 31% think a dedicated office space is important in their next home.<\/p>\n\n\n\n

Know your client, get the commission<\/h2>\n\n\n\n

According to Clever\u2019s survey, 30% of millennials are house hunting earlier than planned due to the pandemic. Real estate agents will see this trend continue, with more millennial clients looking for homes in the coming years.<\/p>\n\n\n\n

Prepare now by understanding the average millennial client and their preferences when buying a home. Then, carefully listen to each client to hone in on their individual needs, maximizing your sales and finding your client their dream home.<\/p>\n\n\n\n

Luke Babich is the Co-Founder and COO at<\/em> <\/em><\/a>Clever Real Estate<\/em><\/a>, the nation’s leading real estate education platform for home buyers, sellers, and investors.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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