How to attract Millennial home buyers

According to the National Association of Realtors®, Millennials currently make up the largest share of home buyers. In order to capitalize on this significant, emerging market, developers need to know what millennial home buyers want. Generally, they are looking for 3 things when considering a home.

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• Affordability & Space
• A Community Feel
• Customization & Personalization

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Affordability & Space

Most millennials value affordability in their homes above all else due to the Great Recession and crushing student loan debt. Affordability is so important to millennials that they are willing to buy smaller homes in the suburbs - despite their desire to stay in the city. This is key for developers to understand what it is millennials are looking for.

In conjunction with affordability, millennials want space. Particularly, they want backyards and outdoor space for their pets and for hosting. Another driver for space is family growth - whether it's raising children or taking care of aging parents.

Builders should focus on building in the suburbs and creating open floor plans. Millennial home buyers also prefer floor plans with at least 3 bedrooms and 2 bathrooms in their homes.
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A Community Feel

As with other trends, millennials are different from previous generations of new home buyers. They prefer to purchase brand-new homes built in a subdivision or tract over custom-built homes.

Builders can design subdivisions with a community feel by incorporating walkability - from schools to coffee shops, etc. They can also build close to public transportation junctures.

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Customization & Personalization

Millennial home buyers generally want low-maintenance homes, but they also want homes they can customize and personalize. They like homes that combine traditional charm with modern, cutting-edge amenities and open floor plans.

Pre-WWII colonials, mid-century-style homes (e.g., Frank Lloyd Wright designs) and Mediterranean designs are popular among millennials. They also appreciate floor plans with dedicated specialty rooms, like game rooms, exercise rooms and media rooms. In terms of modern amenities, millennials focus on their kitchens and bathrooms.