The housing market has seen some dramatic ups and downs in the last few years. From sky-high demand and low supply to soaring interest rates, buying a home has been a rollercoaster ride for those looking to reach these milestones in life. The younger generation looking to get in: Gen Y, also known as Millennials, and Gen Z.
Let’s examine exactly what these youngsters are looking for in a home.
Location has been an important consideration when buying a home throughout history. It’s no wonder that Millennials and Gen Z have their own opinions about the importance of location when buying property. What appeals these generations? Ideally, they’d like to settle into a spacious, affordable home in the suburbs. Good schools, open spaces and access to public transport were also highlighted as attractive to young families and households with pets.
While it shouldn’t come as a surprise, both Millennials and Gen Z want their purchases to include smart home technology. The majority of these younger home buyers, having grown up with cutting-edge technology, prioritize the convenience and prestige that such devices can offer. From programmable app-controlled thermostats to smart locks with fingerprint unlock, these features are in high demand despite the added cost.
Space to Focus on Fitness
During the COVID-19 pandemic, people with active lifestyles found ways to exercise at home. Today, this convenience is gaining popularity, with more than half of young consumers looking for a place to exercise or a gym in their future home. In fact, the home fitness industry is expected to surpass $15 billion by 2028 as millennial and Gen Z homeowners look to expand their gyms in the coming years.
Design and Aesthetics
Open concepts and modern furnishings are at the top of home design lists for both generations. As trends change, modern minimalist looks seem to be the most popular, with 34% of 13-39 year olds saying they would use the term to describe their home’s aesthetic. This look, defined by monochromatic colors, clear rooms, and furnishings in natural materials and tones, looks set to stay. Plus, this clean style looks great on social media posts, which was an important factor for 56% of respondents to this survey.
Today’s home is more than just a place to rest. Home can also be where someone is working… as long as there’s enough space. That’s why home offices – or at least dedicated places to hold virtual meetings and conversations – are increasingly in demand. Also on the list of desirable amenities for Gen Z and Millennials is a convenient laundry area and updated kitchen.
Another convenience that young consumers are looking for is open space for fresh air and relaxation. Mental health and well-being are key in our stressful world. An outdoor space or similar place to relax allows time to be devoted to comfort and tranquility. This type of space also appeals to dog owners, with 42 percent of millennials surveyed who had never purchased a home saying their dog would play a role in future home purchases.
Ready to Move-In
As the cost of higher education and the cost of living today is much higher than that of previous generations, both Generation Y and Generation Z tend to be heavily in debt. So it’s important to find a home that fits on a tight budget without too much work or too many surprises. That’s why more and more online apartment searches include parameters like “move in” or “turnkey” to narrow down the list of possibilities.
Welcoming New Homeowners
It’s no secret that buying a house is a difficult thing for today’s young generation. With stiff competition for low-cost options and high debt levels, the process is likely to become more difficult going forward. To keep things less challenging, it’s recommended that you increase your savings for a better down payment, do extensive third-party background research, and find the right mortgage lender before jumping into the already crowded housing market.
For more information on what Generations Y and Z are looking for in a home, check out the following resource by Renovo Financial.
This infographic was created by Renovo Financial, a home improvement loan company