Those who constitute as millennials differ but according to Census bureau, it is those born between 1982 and 2002, though most prefer to place the cut off age at 2000. The running assumption is that this population had graduated college and have their first jobs. Though it doesn’t cut across the board, this is the expected trajectory of those within this age group. With that comes the desire for most to live in their own two bedroom apartments as they make gradual steps toward independence.
Reasons millennials rent more
There are many reasons why this group contributes to the major increase in rental rates. Among the reasons is the lack of financial stability as most are grappling with student loans among other financial constraints. For most, purchasing a home is not a priority. Most prefer to move around and seek other opportunities; owning a home is more permanent and would decrease their bid to venture out and explore other jobs and experiences in a moment’s notice.
How to tap into this market
Real estate developers can gear their projects toward catering to this demographic. Understanding their specifications is the first step toward building property that’s mostly guaranteed to be in demand. What most opt for are studio or one-bedroom furnished apartments efficiently designed to maximize on comfort. The total cost of the apartments also needs to be affordable and to be in line with their monthly budget.
This is different from what older generations sort out. The number of Baby Boomers stands at 74 million in the US, with millennials closely behind at 71 million. As expected, the number of the later will only decrease as the years pass. The Pew Research Center estimates in 2019 the numbers will be the same. Given the numbers for millennials is expected to rise, those looking to build apartments should consider shifting their focus to this demographic.
Another factor to consider is that this population prefers spending money on experiences and not roofing services. It therefore means they’ll prefer to stay in places that offer connectivity, entertainment, shopping and dining experiences. Realtors who know this gaining more business because are seen to understand and meet the demands of this generation.
How millennials are marketed to is also different. A large majority first look for houses online before contacting a real estate agent. Realtors should adopt communications tools that appeal to them. Using images and having a blog that displays the company’s expertise is a plus. Apart from receiving commissions from home sales and rentals, people want to find useful information on the realty website.
Remaining relevant in the market today requires an understanding of the current housing landscape. In the same breath, it means studying social behaviours of certain populations and acting accordingly.