Millennial Home Buying Facts: What Real Estate Agents Need to Know

This month at Morris Marketing Group, we have focused our attention on Real Estate Marketing to Millennials. First, we talked about National Association of Realtors® partnership with Modern Family, an incredibly popular, Emmy award-winning television series. Next, we offered our best tips for real estate marketing to Millennials. We followed this by sharing a fantastic infographic that depicts how Millennials are changing the housing market. To wrap up our month-long discussion, we would like to present some facts that real estate agents need to know when marketing to Millennials.

Millennial Home Buying Facts that Real Estate Agents Need to Know

According to BMO Harris, here are the 5 Millennial home-buying trends that real estate marketing professionals need to know.

5 Millennial Home-Buying Trends

1. Millennials are moving to the suburbs
2. To reach Millennials, you need to be online
3. Single Millennial women are buying homes
4. Federal Housing Administration (FHA) loans account for 35% of Millennial home purchases
5. Millennials are skipping starter homes

For more detail, please visit BMO Harris.

5 Stats That Show How Millennials Deviate from the Norm

According to Zillow Research, Millennials navigate the decision-making process differently than any other generation. Here are 5 stats you need to know when helping Millennials purchase their homes:

1. 42% of homebuyers are Millennials, making them the largest group of buyers
2. More than 90% of Millennials will perform online research when purchasing a home
3. Nearly 60% of Millennials will rely on real estate referrals, information and advice from people they know
4. 26% of Millennials are housing flexible, meaning they are open to purchasing townhomes or duplex/triplex properties
5. More than 70% of Millennials will consider renting as opposed to purchasing

For more Millennial real estate stats and numbers, visit Zillow Research.

5 Common Misconceptions About Millennial Home Buyers

Many misconceptions about Millennials are being flouted online and around the water cooler. Here the top 5 that we would like to help clear up, with help of a report from the National Association of Realtors®:

1. All Millennials are broke – According to a report from the National Association for Realtors®, the 37% of homebuyers under the age of 36 have an income between $65k to $129,999k, and the median home purchase price among this generation is $205k. Furthermore, a whopping 89% purchase a home with 3+ bedrooms.
2. Millennials are all single – On the contrary, Milennials are just as likely as other age groups to be married, and 51% of this age group are likely to have children at home.
3. Millennials only buy fixer-uppers –The 36-and-under demographic is less likely to choose a house based on “charm” or “character” and much more likely to avoid renovations or potential pitfalls, like electricity or plumbing issues, than their counterparts aged 37-61.
4. Millennials are only interested in urban areas – The average Millennial is 57% more likely to choose the suburbs over another area, a higher percentage than any other age group.
5. Millennials only care about price – As it turns out, Millennials are the most likely age group to compromise on price and the second-least likely to compromise on the quality of the neighbourhood (with Baby Boomers just skating into first place).

For more information and stats, visit NAR Homebuyer and Seller Generational Trends Report 2017.

This concludes our April series on Real Estate Marketing to Millennials. Did we leave anything out? Would you like to add your insights? Please let us know!