As millennials have begun taking over as the largest demographic of home buyers, you may find yourself trying to adapt to their tastes. While it’s good to know the unique expectations millennials have, it’s important to know there are some things that appeal across time and buyers, regardless of age.
When it comes to buying a new home, millennials look for 3 things that you’re already providing.
- Affordability
- High quality
- Convenient location
You don’t need to recreate the wheel to appeal to millennial home buyers. Let’s look at some reasons why millennials want these timeless aspects in their homes and how you can speak to those needs.
Affordability never goes out of style
Millennials aren’t unique in their desire for affordability. Their uniqueness stems from why they want affordability and how it affects what they’re looking for.
Consider these facts about millennial buyers.
- On average, millennials carry tens of thousands of dollars in student loan debt.
- 30% of millennials spend $300,000 or more on their first home.
Many potential millennial buyers carry a down payment’s worth of debt. As a generation, they’ve gone through 2 “once in a lifetime” economic downturns during their formative money-making years (the Great Recession and COVID-19). And as they’ve begun positioning themselves to buy homes, the price of homes relative to their income has skyrocketed. It’s little wonder why they want affordability.
And yet, millennials are still leading the home-buying market. How?
How affordability affects what they’re looking for
Millennials are thrifty because they have to be. They’re often willing to compromise to keep the things they buy within their monthly budget. This includes settling for smaller houses and moving out to the suburbs, despite their stated desire for larger houses they can live in forever within central city limits.
As a builder, this information is invaluable. Creating suburban communities of tract housing is a proven way to attract millennial home buyers. Another way to entice them is by giving those buyers enough space to capitalize on their homes by renting out rooms. Up to 35% of millennial home buyers say that they’d consider renting out at least one room in their home. Designing homes that give them that opportunity, without encroaching on their space, could be a strong building strategy that appeals to their need for affordability.
More than any generation, millennials are skipping starter homes in favor of homes that they can live in for the long term. They entered the market later than most, had to save more money over a longer period of time and are looking for a way to finally plant roots. This means they’ll be pickier about quality. And because millennials are expert researchers, they’ll want third-party validation that any home they buy is in good condition.
How you can assure millennials that your builds are in good condition
Millennials have many choices when considering builders. Though they need affordable homes, they also want confidence that the home they buy is high quality. A smart way to give buyers both affordability and confidence is by covering them with a comprehensive builders warranty from 2-10 Home Buyers Warranty (2-10 HBW).
A 2-10 HBW builders warranty gives millennial buyers third-party validation that the home they’re buying is in good condition. It assures them that if they experience any structural issues, which can cost $42,000 –$113,000 per claim, they’re protected. This speaks directly to millennials’ concerns about affordability and third-party validation. Additionally, it can remove some of the less obvious costs of home ownership, which is something millennials often overlook.
It also benefits you by differentiating your homes. Millennials research everything. They look for outside opinions when they order food, so you can bet they’ll look for even more authoritative opinions when searching for a home. When they don’t have to worry about yet another event outside of their control busting their budget—because you provided an industry-leading warranty—they’re likely to be much more comfortable buying from you.
Plus, a 2-10 HBW builders warranty protects the profit you make selling to millennials. A huge benefit is that it transfers structural-defect liabilities from your books to ours. But it doesn’t take a catastrophe for you to lose money on a home. 2-10 HBW can help you save time and money by taking homeowner calls on your behalf so you can spend your time doing what you like—building beautiful homes.
Convenient location never goes out of style
Like generations before them, millennials want accessibility to amenities like town centers, grocery stores and schools. This ties into their desire for a strong community around them. They’ve found that to access convenient locations and a sense of community at a price they can afford, they may need to move out to the suburbs, and most millennial home buyers are happy to do that.
As you build communities for this generation of buyers, be thoughtful about where and how you build. Make it convenient for them to get to town centers and places where they can congregate, and you have a great chance to attract millennial buyers.
Learn how you can protect your business and add valuable selling points to your new builds with a 2-10 HBW structural warranty.
