The Millennial generation has recently become a force on the real estate market. For the second year in a row, NAR's study found that Millennials made up the largest group of recent buyers at 32%. More than half of 18 to 34-year-olds have expressed a desire to buy a home in the next five years. A recent report by Harvard predicted that the number of Millennial households are expected to increase by 2.7 million in the next 10 years…strongly boosting the demand for new housing. We’re currently on the edge of the Millennial housing market, and so far it’s proving to be incredibly strong.
What have you heard about millennial home buyers? Most likely you have heard that this generation is decidedly urban. The popular myth is that all Millennials want a hip San Francisco apartment within walking distance from Whole Foods and the nightlife scene. Surprisingly, Millennials have actually been gravitating more towards practical, spacious areas. According to a survey done by the National Association of Home Builders, only 10% of Millennials desire to live in hub of a city, while 66% are looking for suburban homes!
So what do Millennials want? Apparently, this generation seeks diversity, low cost of living, and decent jobs. If this is the case, it’s no surprise that San Antonio was recently labeled the #1 “Millennial Boomtown” by Forbes! The city gained 28,600 new Millennials in the last several years...an increase of 9.2%!
Most people picture Millennials as twenty-something hipsters or a techies who hang around the Apple store all day. Older generations often dismiss Millennials as lazy, entitled, and technology-dependent. And, while it might be easy be to sweep all Millennials into one broad, over-caffeinated category, we’re missing something if we don’t look a little deeper. This is especially true when it comes to Millennial real estate habits, which have been puzzling experts for several years!
Preceded by The Baby Boomers (1945-1964) and Generation X (1961-1979), the Millennial Generation (sometimes also referred to as “Generation Y”) is made up of people born between the years 1980 and 1995. Millennials are now the largest generation in history, boasting approximately 90 million members. They have a recession mindset, meaning they’re frugal with money and hindered by a difficult job market. Millennials are also pushing back the marrying age to their late 20s, several years older than the previous several generations.
Recently, the Boston Consulting Group, along with Barkley and Service Management Group, surveyed 4,000 Millennials and 1,999 non-Millennials in the US in order to identify their behaviors and attitudes. Not surprisingly, “Millennials” aren’t homogeneous. The survey found that this generation can be divided into 6 distinct sub-categories according to their various habits and outlook on life: The Hip-ennial, Millennial Mom, Anti-Millennial, Gadget Guru, Clean/Green Millennial, and Old-School Millennial. Each of these types has a specific outlook on life...and each want different things when buying or renting a home.
Hip-ennial | 29% | “I can make the world a better place.”
According to the survey, Millennials in this category tend to be cautious consumers, globally aware, charitable, team-oriented, and information hungry. They are heavily involved in social media and consume a good deal of online content. This genre of Millennials tend to be populated by females and have below-average employment, usually because they are students or homemakers.
Likely to live: Our best bet is that some Hip-ennials will seek out interesting, trendy homes, while others will try and find cheaper places near shopping and restaurants.
La Cantera neighborhoods (Mira Vista, Eilan, Wildwood West)
Millennial Moms | 22% | “I love to work out, travel, and pamper my baby.”
The “Millennial Mom” segment is generally the oldest and has the highest income. These people are confident, highly social, and digitally savvy. They have a high online intensity and are information hungry. Though they may feel isolated from others by a busy routine, they are very successful and driven individuals who place a high emphasis on family.
Likely to live: More likely to want to live in more suburban areas, but still close to shopping, fitness centers, and within good school districts.
Anti-Millennials| 16% | “I’m too busy taking care of my business and family to worry about much else."
This demographic certainly rebels against the typical “Millennial” stereotype. Anti-millennials are generally conservative, uninterested in trendy, eco-friendly products and service. They prefer to stay comfortable and in familiar environments, avoiding excessive excitement, change, or interruption. Anti-millennials are just slightly more female, and they are more likely to be Hispanic and from Western US.
Likely to live: Suburban area close to work.
Gadget Gurus |13%| “It’s a great day to be me.”
In a nutshell, the “Gadget Guru” is a savvy Millennial bachelor. This group is male-dominated, generally single, and earns an above-average income. They are successful, wired, free spirited, confident, and at ease. Most believe that this is their prime decade. Gurus contribute lots of online content and own the most devices.
Likely to live: Near the pulse of the city, close to networking, innovation, and nightlife
?Villas at Oakwell Farms (proximity to Rackspace)
Clean/Green Millennials | 10% | “I take care of myself and the world around me.”
This small group of Millennials is cause-driven, impressionable, healthy, very environmentally concerned, and positive. Though they only make up 10% of Millennials, they contribute the most content online, usually cause-related. They are the youngest demographic, and more likely to be male or Hispanic.
Likely to live: Since this group is the youngest, they’ll be found in less expensive homes, near campus, or near green spaces.
?UTSA Off-Campus Housing (Aspen Heights, The Outpost)
Old School Millennials | 10% | “Connecting online is too impersonal. Let’s meet up for coffee instead!”
This group is the least wired out of all Millennials. They are cautious consumers, charitable, confident, independent, self-directed. They read more and spend a significantly less amount of time online. As you’d expect, this crowd tends to be on the older range of Millennials, and they are more likely to be Hispanic.
?Likely to live: This group is likely to buy in a more traditional type neighborhood, close to city perks but not in the center of things.
?Garden Ridge (West Village at Creekside, The Woodlands)
Related Articles: 7 Things You Need to Know About Millenial Home Buyers