As America’s largest living generation, millennials have already reshaped a number of industries, from retail to restaurants. It’s only logical that this massive segment of society is also having an impact on the real estate market. Whether it’s taking out mortgages or choosing to rent instead of own, millennials are making their mark across the country and around the globe. As a property manager, staying on top of what’s trending with Gen-Y is a great way to position yourself for success, both currently as well as in the relative future. Not sure what’s up with this generation? Let’s take a look.
Gone are the days of flipping through the newspaper in search of homes for sale or apartments for rent. The majority of today’s tenants and would-be-buyers are turning to digital resources for their real estate and property management needs. In particular, millennials rely on social media to help influence many of their buying decisions. Property managers and landlords can capitalize on this by maintaining a strong and active online presence.
Preference for renting
With mortgage rates steadily on the rise and projections of a continued up-tick, many aspiring first-time buyers are beginning to rethink their strategy. What once seemed like an attractive option may now seem like a risk not worth taking, at least not for the next few years. This is good news for landlords, as it means a greater pool of prospective tenants to choose from when trying to fill a vacancy.
As millennials begin to move away and enter the housing market they will begin competing with Gen-X and the Baby Boomer generation for property. This, combined with an already low inventory, will create more scarcity and lead to greater competition. Home sellers will be in an excellent position to choose from multiple attractive bids while landlords and property managers will have their pick when it comes to potential tenants. Vacancies are anticipated to be at an all time low.
The millennial generation is passionate about environmental issues and eager to do their part in reducing their carbon foot print. Real estate professionals can capitalize on this by focusing on eco-friendly amenities, such as: programmable thermostats and energy efficient appliances, upgraded insulation and UV-protected windows. Even as housing costs rise, millennials will still see significant value in these environmentally friendly features. More importantly, they’ll be willing to pay a premium for them.
Today’s home buyers and apartment dwellers are becoming much savvier than they were in recent years, which means by the time you’re interacting with them, it’s likely they’ll already be well-prepared and knowledgeable. Therefore, property management professionals will need to provide millennials with something that they can’t easily get online. For instance, instead of introducing them to properties, provide guidance in other key areas, like inspections, insurance and negotiations.
As more and more millennials enter the housing market, things will continue to shift and evolve. Anticipating what those changes may entail can help you better prepare and position yourself for future success.