In the past decade, Florida has been a hotspot for real estate, with many homeowners and prospective buyers looking to purchase their dream home in the state. With high-rise condos going up every day, it's no wonder that millennial home-buyers are now starting to take notice of all the great opportunities down south.
Recently, there has been a surge of interest from younger generations in Miami and Orlando, as these two cities have seen a considerable increase in millennial residents. Data shows that nearly 68% of people living in Miami are between 20 and 34 years old, translating to more young professionals hunting for homes soon.
Here, we will explore the main motivating factors that affect millennial home-buying behavior and how you can work with them as a seller.
Real estate market in Florida
Florida maintains a reputation for being one of the most beautiful places to live in America. It is home to many beautiful beaches, incredible weather, and fantastic wildlife - but it also offers something else that might interest your average millennial: affordable housing.
The median price of homes in Florida is lower than the national average. In the summer of 2021, home prices in Florida were trending more down for a change at just under $382K.
In the Florida real estate market, millennials are a rapidly growing population. This group is currently in its prime earning years and has been buying homes at an unprecedented rate in recent years.
For millennials, homeownership is a state of mind. As the generation raised in a society where they can have anything at any time, it's not shocking that many are turning to homeownership to achieve stability and financial security. However, with the average age of first-time buyers being 31 years old and over $100k spent on their education, today's millennial buyer needs an understanding mortgage lender who can help them get the right property for their situation.
Suburbs vs. Urban Communities
The millennial generation has radically different preferences for where they want to live, work, and play. Millennials are the highest number of living generation in America, and they may be changing the way we buy homes. The housing market is steadily rising this year, but there has been one noticeable change: more young people buying suburban homes than urban ones.
Acquiring more education than any other generation may lead to millennials wanting to live in cities over suburbs. However, the truth may not be that simple.
The trend of millennials buying suburban homes has many wondering what has caused such a shift? Is it because suburbs offer larger backyards that millennials want for their growing families? Or maybe it's because they prefer to live close to family and friends who have already settled down in those areas?
Millennials are often strapped with student debt, making it challenging to afford big city life or the suburban lifestyle many grew up with. in childhood. As a result, some millennials find themselves stuck between two worlds - one where they can't afford a house but don't want to live in an apartment building either. In contrast, others have found a way to make both lifestyles work together seamlessly by buying homes close enough that they can get into the city during rush hour without being too far away from home.
Hurdles in homeownership for millennial buyers
Millennials are currently the next generational wave of home buyers. Growing up during times of unstable economic conditions and high unemployment rates has made them more risk-averse, which is reflected in their hesitancy to buy homes at this stage in life. As a result, the housing market has slowed down due to conditions that people born in the millennial age group find unfavorable.
Millennials are considered a generation that doesn't want to settle down, but the truth is that they're just not able to buy homes. Millennials also have a higher student debt-to-income ratio than any other generation, and some also struggle with financial literacy. These hurdles make it difficult for millennials to save up enough money for their first mortgage. There are multiple motivating factors when purchasing a home.
Desire to own a home.
The Millenial Generation as a group has displayed a strong interest in owning homes. The reasons for this seem to vary, but they all point towards the desire to own something tangible that will provide stability and security.
Millennials are now the largest generation in history - and they're ready to buy homes. According to a survey by Genworth Financial, millennials say that future investment is their top motivating factor for purchasing a home. In addition, as millennials reach adulthood, many see owning property as an opportunity to build wealth over time by leveraging the value of what they already own.
One of the top motivating factors for millennial homeownership is the ease to commute. Millennials would rather live near work than friends or family. Due to time restraints, they want to be close to their jobs with minimal time spent traveling back and forth.
What do millennials look for when buying a home?
Millennials are the generation that is shaping America's future. They are socially responsible, care about the environment, and want to make a difference in their communities. So it is certainly no surprise that they would be interested in purchasing energy-efficient homes for themselves. After all, saving money by not spending on utilities can provide them with more disposable income to donate or use for other charitable causes.
Homes that are conductive with raising kids
It's not just millennials that are looking for homes that are conducive to raising kids. Parents of all ages are looking into the future and realizing how important it is to find a home where their children can grow up in comfort, safety, and security. The list of things parents want when they're searching for homes goes on and on- space to play outside, plenty of bedrooms, an open floor plan, but there is one thing every parent wants: peace of mind.
Previously owned homes
Millennials are not buying new homes as their parents did; but instead, they're looking for previously owned homes. They find that it's more economical and cost-effective to buy a pre-built home than to pay the high price of creating an entirely new home.
How to effectively work with millennial home-buyers?
Consider their budget
Millennial home-buyers are a unique group, requiring specific preparation. The key is understanding that they're not just looking for homes-they're looking for their homes. They want something that suits their needs and tastes, which is why it's so important to
listen with intensity to better meet their needs.
That means considering their budget and giving them the space to explore the home on their terms. It can seem like extra detail work at first glance, but if you take this approach with your following home-buyer clientele, you'll find yourself with clients who will appreciate your attention and offer referrals.
Text before call
Millennials are digital natives; they are born into an always-on world where everything is available with a few taps on their phones. For them, it's all about texting and social media. So what does that mean for you? If you want to be successful with millennial home buyers, you need to embrace technology first! That means text your clients before calling them because they'll likely respond more quickly than if you call or email them out of the blue.
Millennials want to make an informed decision about their future, and they want the ability to be able to change it as they please. To persuade them to buy a home, you have to be transparent with them. If you're not truthful about what your property entails, they will find out on their own and then end up hating your guts for lying. You must give them all the necessary information to make an educated decision about whether or not this is where they would like to live long term.
How To market homes to millennials?
Millennials are unique. They are usually tech-savvy, growing up with technology and social media, so they know the power of online marketing and use it for themselves. To market your home to millennials, you'll need to tap into their natural inclination towards making decisions reflective of what they see on social media platforms like Instagram or Facebook.
Millennials trust referrals
Millennials are a generation of digital experts who have developed with the internet and know how to use it. As a result, they trust referrals from their peers, celebrities, and experts more than any other form of advertising.
Millennials are the most diverse, educated, and progressive generation ever. However, they have different values than previous generations, which is essential to leverage when marketing homes. Being authentic is key to the success of any marketing campaign with millennials in mind.
The buying behavior of millennial home-buyers is specific. Still, it's also reflective of society at that time. Understanding such differences can help you market your property to this generation better and improve your chances of closing a sale with them.