Throughout generations, buying a house has been viewed as a rite of passage. As the formula goes: go to school, go to university, get a good job and buy a house. The millennial generation, however, has set different trends in not only society but in the real estate industry as well.
Here are some real estate trends set by millennials that you should know in order to appeal to this generation:
1. Millennials would rather rent
Described as “rentvestors,” (rent investors) millennials would rather rent than buy their own property. This can be attributed to the flexibility they seek in their daily lives, often putting job changes for career advancement and travel at the top of their list. It therefore makes sense why the average millennial would choose to rent rather than tie themselves down to a permanent decision that would affect their career and travel prospects.
Added to this, millennials have faced economic and social pressures that other generations have not. Millennials are opting to have less children than previous generations, a decision which can be explained by rising economic pressures and personal belief systems influenced by a more progressive society. Having lived through 2 major global economic crises — the housing crash of 2008 and the coronavirus pandemic of 2020 — buying a house may be far down the list for many as costs of living rise and income is reduced or stays the same.
Millennials want affordable rentals that provide value for money.
2. Millennials love pet-friendly rentals
“Regrettably, no pets allowed” reads the end of an ad on a property portal. The average millennial is likely to groan when they come across such an ad. To millennials, their furry friends are family, which is why seeking a pet-friendly rental is important.
To appeal to this generation, make your rental pet-friendly and watch the demand shoot up.
3. Millennials are seeking eco-friendly homes
Millennials are environmentally conscious and interested in reducing their carbon footprints. For this reason, lifestyle eco estates are gaining popularity among young buyers and tenants in South Africa.
Installing alternative energy sources like solar power and having eco-friendly appliances as well as recycling bins in sectional titles is a great way to appeal to the millennial generation.
4. Millennials use technology when looking to rent or buy
Technology is an integral part of a millennial’s life. Unlike previous generations who used property magazines and newspapers to look for houses and apartments, millennials just type the area of their choice into a property portal search bar.
This is why it’s important to improve your web presence if you are an agent or a landlord, so you can reach this demographic.
5. Millennials prefer communicating via text
This generation would rather text agents or landlords than speak over the phone. They prefer convenience, and what’s more convenient than a quick text that elicits a quick response?
6. Millennials are well informed
Unlike previous generations of buyers, millennials have an abundance of knowledge through the internet. This gives them the ability to do extensive research before stepping onto the property market and committing to a big decision.
7. Millennials want a stylish and spacious kitchen
Millennials love modernity, so it’s important that the space they move into reflects that. Old school kitchen cabinets resembling the 1980s are sure to send potential millennial tenants and buyers running.
8. Millennials want an open plan home
An open plan home is popular among millennials. Open plan spaces tend to feel larger and more accommodating than those that are sectioned off.
9. Millennials want a home office
Remote working is becoming the norm and with millennials being fond of freedom and flexibility, many of them work from home. This means they need a space where they can do their work, so a home office is likely to be an important part of their dream property list.
Keep the above in mind when setting up your rental to appeal to the millennial generation.
