The housing market has seen some pretty drastic ups and downs lately. From extremely high demand and low supply to rising interest rates, buying a house has become a rollercoaster for those who want to achieve this milestone of life. Looking to climb aboard are the younger generations: Gen Y, also referred to as millennials, and Gen Z.
Let’s explore just what it is these young age groups are looking for in a home.
This infographic was created by Renovo Financial
Location has been a major home-buying consideration throughout history. It’s no wonder millennials and Gen Zers have their own opinions on the importance of location when purchasing property. What are they drawn to in terms of locale? Ideally, they’re looking to settle down in spacious, affordable homes nestled in the suburbs. Good schools, outdoor spaces and access to public transportation are also prominent qualities, since these appeal to young families and households with pets.
Although it shouldn’t come as a surprise, both millennials and Gen Zers want their purchase to feature smart home technology. Having grown up with cutting-edge technology at their fingertips, the majority of these younger homebuyers prioritize the convenience and prestige such gadgets can provide. From programmable thermostats controlled with an app to smart locks with fingerprint unlocking, these features are in high demand despite the added costs.
Space to Focus on Fitness
During the COVID-19 pandemic, people with active lifestyles had to come up with ways to work out at home. Now, that convenience is more popular than ever, with over half of young consumers seeking the space for a workout or fitness room in their future home. In fact, the home fitness industry is reportedly expected to exceed $15 billion by 2028 as millennials and Gen Z homeowners look to expand their fitness rooms in the coming years.
Design & Aesthetic
Open concepts and modern-style décor are at the top of the list for a home’s design for both generations. While trends are always changing, the minimalist modern look seems to be the most popular, with 34% of 13- to 39-year-olds saying they would use this term to describe their home decorating aesthetic. Defined by monochromatic colors, uncluttered spaces and furnishings that feature natural materials and tones, this look seems to be here to stay. Plus, this clean style looks good for social media posts, which is an important factor for 56% of those survey members.
Homes are more than just a place to rest your head these days. They can be where someone works as well… as long as there is enough space. That’s why a home office — or at least a dedicated place to take virtual meetings and calls — is becoming highly sought after. Also appearing on the list for millennials’ and Gen Zers’ desired amenities were a convenient laundry area and an updated kitchen.
Another amenity young consumers seek is an outdoor space to get fresh air and relaxation. Mental health and wellness is key in our high-stress world. By having an outdoor space or similar place to relax, time can be devoted to comfort and calm. This type of space also appeals to dog owners, with 42% of surveyed millennials who have never purchased a home saying their dog would play a role in future home purchases.
As the price of higher education and the cost of living are significantly higher now than in previous generations, both Gen Y and Z are more likely to be deeply in debt. This makes it essential to find a home that can fit into a tight budget without a lot of work or too many surprises. As such, a greater number of online home searches include parameters such as “move-in” or “turn-key” ready to narrow down the list of possibilities.
Welcoming Home the Homeowners of Tomorrow
It’s no secret that buying a home is difficult for today’s younger generations. With the intense competition for cost-effective options and elevated levels of debt, the process is likely to be more challenging going forward. To make it less demanding, it’s advised to increase the amount of savings for a better down payment, put ample research into third party origination and shop around for the right mortgage lender before diving into the already crowded housing market.
For further information on what Generations Y and Z look for in a home, please see the accompanying resource by Renovo Financial.