How Millennials Are Transforming the U.S. Housing Market

Written By Sean Keeley | July 18, 2019 | Published in Real Estate Market Trends
2019%2f08%2f06%2f13%2f41%2f04%2f9b36f14f bd25 4c09 9657 5b39c3b657f1%2fu.s.%20millennials%20hudson%20yards

Millennials are having an impressive impact on the way the U.S. marketplace is evolving. This is particularly evident in the housing market, where millennial tastes are shifting focus and creating new trends.

As Forbes notes, millennials did not have as strong a presence in the housing market a decade ago, especially due to the financial crisis and increasing debts that led many to move in with their parents. But as a result of improving economic factors and older millennials wanting to start families, a higher percentage of them are arriving to the housing market and causing an upward shift in demand and home sales growth. While the data varies, the market now sees between 1.2 million and 1.5 million new households per year, a significant increase from the estimated 530,000 recorded in 2009.

While some millennials are taking the same route as other age groups and settling in the suburbs, one key difference is that many want to stay in urban centers and raise a family in or around the city. According to Realty Biz News, there has been a significant increase in millennials seeking out an urban lifestyle, in stark contrast to the previous generation. Another notable area with which millennials have developed interest is the high-end market, which is driving an upswing in luxury homeownership.

With a renewed interest in urban and luxury living, certain patterns have emerged as millennials shift focus from what was ideal for their parents to what is ideal for them. This is having a profound impact on home builders, designers, and developers who want to attract these important buyers by keeping up with the newer trends that appeal to them.

Reflective of the adjustment from suburbs to the city, one emerging trend is living space size holding less importance to millennials. Instead of acquiring as much extra room as possible, they are interested in making efficient use of the space they have and filling it with high-end amenities that provide value. Whereas many millennials may have grown up in homes with a front room that was rarely used, they are more likely to create multi-use rooms, as well as pack kitchens and bathrooms with plenty of features. Their goal is to maximize usage of the space they have instead of expanding and creating extra space that they don’t need.

Another ever-present trend is smart homes, which are currently in high demand for millennials. Many want to be connected digitally no matter where they are in the house, and whenever possible. Smart appliances, whole-house networks, Alexa devices, and voice-controlled monitoring systems are all becoming increasingly standard in households throughout the country.

A desire to be eco-friendly is another major trend for millennials in how they think about their home. Solar power and energy-efficiency through air purification systems, geothermal energy systems, and tankless water heaters are becoming increasingly popular in the home. As many millennials continue to decrease their carbon footprint, green homes are becoming a more common and well-known trend in the U.S.

Ultimately, millennials tend to want to be connected, whether digitally or in the real world. This means that indoor and outdoor living is a must. For many millennials, the ideal situation of living in an urban area often includes having everything they need within walking distance, such as markets, cafes, restaurants, bars, shops, and entertainment. Because of this, it is no surprise that developments like Hudson Yards have been welcomed by so many. Connectivity, community, walkability, and wellness are all cornerstones of the millennial homebuying process. 

Blog Archive

 

This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. © 2020 REBNY Listing Service, Inc. All rights reserved. RLS IDX Data display by Elegran LLC. IDX information is provided exclusively for consumers’ personal, non- commercial use and that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Elegran LLC may or may not be the exclusive listing agent of the properties being displayed on Elegran.com. All data displayed on Elegran.com is presented for informational purposes only and should be independently confirmed by all customers. All Information is compiled from both public and private sources including, but not limited to the RLS, MLS and ACRIS; each of which is assumed to be reliable. All information displayed is subject to errors and omissions regarding apartment specifications and final sale prices, and further, any unit listed may have had its listing withdrawn without notice subsequent to such information being compiled. No representation is made as to the accuracy of any description (ie: listing, close sale data, and/or building description) of any building or individual unit. All measurements and square footage are approximate and all information herein should be confirmed by customer and/or their attorney. Elegran LLC, its members, affiliates, and contributors adhere to New Your City, New York State, and United States Fair Housing Laws.