Millennials tend to get a bad reputation among the older generations with stereotypes such as being self-centered, lazy, and being too financially dependent or unstable to be homeowners. However, all those stereotypes fail to acknowledge that Millennials as a whole generation includes incredibly bright and ambitious people that aim to achieve wealth and live a luxurious life.
Previous generations had a clear definition of how an aspirational life should look like. Their choices were all focused on getting a degree from a leading institution, getting a highly regarded career, and getting married and starting a family by a certain age. All those ideal life goals were also reflected on consumption models to the extent to which products were a way for them to testify that they have reached different life stages and achievements. Yet, for Millennials, this ideal life differs substantially as concepts such as family or religion are no longer among their top priorities or indispensable elements. They are part of the digital revolution which leads to a different perspective of possibilities and priorities.
Millennials rent longer and buy later
Millennials are the first generation to approach adult life in less favorable economic conditions than their parents. They face more financial troubles in their 20’s when they focus on their personal development and growth in their careers and have to pay off huge student debt loans. Thus, they can rarely afford to buy a place of their own so they are forced to rent longer than previous generations. Moreover, while they are still growing in their careers, they avoid purchasing homes because they are more willing to relocate for better job opportunities or job security. Also, compared with their parents, Millennials have many opportunities and they want to travel around the world during their youth. Therefore, it just makes much more sense for them to rent a place instead of investing in a home for their own.
When they do buy, they invest in luxury homes
Millennials are more engaged than previous generations with self-expression believing that luxurious products and brands are not just a way to show who they are but a way to define themselves. Why are Millennials so wealth-focused and aim for luxury compared to the previous generations? Being highly digital and better educated, Millennial luxury consumers are exposed to a variety of options they can choose from, which was not the case for the previous generations. Millennials have more access to information in the online world so they naturally aim higher than their parents did. Although they tend to postpone the moment of becoming a homeowner, when they do buy, Millennials purchase luxury homes. Millennial homebuyers have changed the housing market by shifting their focus from the price of the property to placing higher importance on its attributes. So, they look for modern homes that have smart-home technologies, eco-friendly features, and modern designs. Real estate experts claim that Millennials tend to do extensive research about the housing market before going hunting for a home and they generally come into the buying process knowing exactly what they want to have in their dream homes.
Millennials invest in vacation homes
Having a vacation home is another powerful sign for wealth and luxurious lifestyle and Millennials want to embrace this part of the housing market too. The Millennial generation is facing a rapid ever-changing world with a lot of instability when it comes to their jobs, personal life, political instability, and financial instability. Thus, they are dealing with higher levels of stress than their parents did when they were their age. Vacation homes are not only a sign for Millennials that they are living a luxurious life but it is also a great way to get away from the busy modern life they are living on a daily basis. Real estate professionals claim that there was a big increase in Millennials entering the vacation-home market as they are buying vacation homes to build wealth by renting them out when they are not living in them. Also, this generation seems to feel a deeper connection with nature as they are more aware and engaged in the existing environmental concerns. Thus, they prefer country homes that are away from the busy cities with huge amounts of traffic pollution and noise pollution.
Millennials are changing the housing market
Since Millennials are the largest group of consumers, real estate developers say that they are more focused on keeping up with the house buying trends among the Millennials. Therefore, they are building more new properties according to the top things that young home buyers want to find in their dream homes. Developers are building properties with amenities that foster a sense of community and wellness, as well as offer the kind of high-tech features that Millennials want to have at their fingertips.