Many factors are impacting the modern housing market. While many of these are economic, political, or environmental in nature, one fascinating market mover is the simple fact that millennials are finally buying houses in larger numbers.
As this younger generation begins to scoop up an increasing number of their own dwellings, they must shift their mindset accordingly, as well.
How Millennials are Changing the Housing Market
Millennials have been criticized for years for their reluctance to buy a home. Many wondered if they were going to break the housing market by simply refusing to buy homes and opting to rent “en masse” for the long-term
The truth is, though, as the financially challenged generation has finally begun to generate more money, they have begun to purchase their own houses — albeit at a later point in life. Now that they’re doing so in larger numbers, several trends are starting to emerge:
The length of time spent shopping: Many Millennials are taking a year or more to slowly and gradually look for a home. This is extending the home-buying timeline compared to past buyers who tended to move much quicker when making their decisions.
A desire for tech-savvy experiences: Millennials are utilizing tech both to buy homes and in the homes themselves. For the former, they often search online, use apps, and utilize remote virtual tours. For the latter, well, it’s no secret that smart homes are the way of the future.
An inability to make larger down payments: Millennials have already lived through a recession, Brexit, and a pandemic. This has left them financially crippled. As such, many Millennials are opting for minimal down payments, as they cannot afford options like the traditional 20% down on a conventional loan.
Wanting eco-friendly perks: While the bones of a home are important, for many Millennials, other factors are just as vital. One of the biggest of these is the eco-friendly nature of a house. The more sustainable the home upgrades, the more likely a Millennial will be to buy a home.
A growing taste for suburban geography and pricey homes: As Millennials are finally looking to buy homes, they are opting to shift from cramped urban settings to more spacious suburban locales. They are additionally often looking to skip the “starter home” stage and go straight to a more expensive, pulled-together home.
While these are just some of the larger factors, they help to emphasize the obvious fact that the millennial home buying experience is distinctly different from that of previous generations. With that said, there is still no doubt that Generation Y is beginning to settle down in their own homes, which means they must begin to think with the perspective not of renters but homeowners.
What Millennials Should Realize About Home Value
With millions of millennials taking out mortgages and settling down in their own houses, a fundamental shift in their collective mentality must start to take place. They must adjust from a mindset where household maintenance and issues are simply resolved by landlords. Instead, millennials must make a concerted effort to begin to not only preserve but also improve their blossoming new estates.
By investing in their homes, millennials can begin to foster a greater sense of wealth, something that has thus far been slow in coming to this young, hard-working generation. Here are a few ways that millennials can improve their living spaces and, by extension, the value of their homes as well, as they get used to life as homeowners:
Maintain Your Home
Before you get too wrapped up with major home improvement projects, remember that the simple act of conducting basic home maintenance is, in and of itself, part of the process of keeping up on your home’s value. Basic things like servicing appliances, repairing leaks, and replacing lightbulbs can do more than just make your family life more comfortable. They can also help your home retain its value.
Consider Unifying Your Decor
While you’re living in your house, it’s worthwhile to make it your own. However, when it finally comes time to sell your house and move somewhere else, it’s worthwhile to consider current decorative trends. By steering into a modern, unified trend for your home’s decor, you can help increase both its value and buy appeal.
Address the Outside
The exterior of your home is as important — if not more so — than the interior. Your home’s outward appearance can improve its curb appeal, make it feel more desirable, and even help the local neighbourhood appreciate. You can add value to your home on the outside by doing things like installing a new garage door, adding a fence, or planting trees.
Not all improvements have to be big, expensive, or structural. Often you can do something as simple as painting with bright colours or hanging mirrors to help improve the look of a small space and make it feel bigger. This can be very helpful, especially if you’re living in a smaller eco-friendly home or even a tiny home.
The Value of a Home
Millennials are entering a new stage in their collective experience. As they buy more homes, it will be fascinating to see how they continue to put their own unique stamp on the homebuying process.
As long as they can successfully shift from a renting mentality to one of homeownership, there is a very good chance that millennials will not just impact but largely rewrite the home-owning experience in the years to come.