How Millennials Affect the Real Estate Industry

Millennial is a term coined by authors William Strauss and Neil Howe in 1987 that refers to those born between 1980 and 2000. This tech-savvy generation is naturally accustomed to a lifestyle that uses technology as a means to achieve goals fast and efficiently.

Millennials are everywhere and the landscape of real estate has never been the same when they approached the industry. Often regarded as the generation of long-term renters, millennials are known for their difficulty to settle down. They prefer to move from one city or neighborhood to another. However, as they get older and realize the importance of a stable job and a fixed address, they are now exploring the market to find a permanent home; currently, they are the major home buyers. Their lifestyle continues to shape the economy and affect the strategies of traditional property developers and real estate professionals.

Preferences and the importance of innovations

Nowadays, millennials use the internet to search for homes and typically only ask the assistance of real estate brokers when they are already ready to buy. They significantly rely on technology, but they still value the help of a seasoned and reliable broker. Consequently, real estate professionals need to stay on top of their game by keeping up with trends and innovations that millennials can use.

Real estate apps serve as a useful tool that millennials utilize. It is also important for brokers to establish a credible online presence. A blog site that provides helpful information that can win the trust of a millennial home buyer is a plus. If a broker would create a real estate website, he should include photos, detailed home information, interactive maps, and a contact number.

Many millennials prefer affordable and small yet efficient spaces; they are usually minimalist. It is important that real estate brokers understand the benefits of a small home. There are millennials who would rather opt for a condominium unit near their workplace than a massive house that is far from their office. Millennials normally find multi-functional homes attractive.

What millennials look for in a broker

Though millennials are essentially technically advanced, they still need the help of a real estate broker to help them understand the market trends and the sales process. The reputation of a broker is important to a first-time millennial home buyer. Hence, millennials often hire brokers that are referred by their friends, relatives or neighbors. The credibility of a broker that leads to transparency and accountability makes millennials feel secured.

To connect effectively with the financially conservative and tech-savvy millennials, real estate companies and professionals need to understand what millennials want. There are no foolproof set of rules or fixed how-to guides to understanding the dynamic lifestyle and preferences of millennials, but flexibility and innovation are necessary to accommodate their needs and earn their trust no matter how they affect the real estate industry.