Here’s a scary thought for all of us getting long in the tooth, the Millennial generation, born between 1981-1996, is now between 28 and 43 years old! That puts them into their home buying prime. At the very tail end of the Boomer generation, I’m not going to pretend to be an expert on Millennials. However, at this week’s San Rafael Coldwell Banker office meeting we had an opportunity to discuss Millennial home buyers, and here are some nuggets of knowledge that came up. All of the following are generalizations and of course vary with individuals.
1) Millennials prefer to purchase homes that are ‘done’. I’ve seen this first hand. Unlike the Boomers before them, millennials don’t like to purchase homes where they can earn sweat equity. They live busy, productive lives and don’t have the time or inclination to work on properties. As such they are willing and able to pay for great properties at top dollar prices.
2) Part of the reason they don’t want to work on properties and want homes that are ‘done’ is because they aren’t expecting to live in the properties long term. Rather than laying down roots, they prefer to be more mobile and ready to jump at the next great employment opportunity.
3) They don’t look at homes as investment opportunities the same way Boomers do. Homes are places to live more than they are vehicles for building wealth. Wealth building is what Bitcoin and Internet Meme stocks are for.
4) Some Millennials are getting home buying assistance from their parents. I think this goes for all generations though, as I’ve also seen it with generation X (1965-1980). As a parent of two generation Z daughters, I’d love to be in the position to help them purchase their first homes one day. Hopefully they’ll want to live close by too!
All this being said, I’ve got an off market listing that I’m hoping to get a couple of Millennial home buyers into contract on. The home is not ready for prime time, and I wouldn’t put it on the market the way it shows now. They are able to envision what the home will look like when after they move in and do some work. So they don't fit the mold laid out above.
Generalizations might be able to help your odds in the greater scheme of the market, but in the end all you need is one specific buyer to appreciate and purchase a property at a price you are willing to accept.