How Millennials Are Redefining Luxury Real Estate

Posted by Terri McAuley on Wednesday, November 27th, 2019 at 11:37am

How Millennials Are Changing Real Estate

If you're still wondering or talking about millennials not buying homes...then you're behind the times.

Millennials are entering the home buying market in a big way, and have been for the past few years.

But that's not to say that they haven't faced obstacles, many of which are still shaping how, when, and why they're jumping into the real estate market.

The desire to own a home hasn't changed much for the younger generations, but rising student debt, stagnant wages, high rents, and later marriages, have all pushed back the home-purchasing decision for those born between 1981 and 1997.

Courting this dynamic cohort means understanding their challenges, as well as their desires.

What Do Millennial Home-Buyers Want?

So what do millennials want from their new homes, especially at the upper end of the market?

To start with, the emerging wisdom on millennials paints a picture of home buyers who are looking for particular experiences and lifestyle, rather than just a commodity.

We've always known that selling homes is more effective than selling houses - but this goes beyond that. Affluent young home buyers are looking to broaden their horizons, see new places, and experience new things.

These desires often run into conflict with the reality of home-ownership, with many millennial buyers expressing regret at being tied to a single property as well as the added obligations of maintenance and yard work.

Common features that millennials look for are eco-friendly utilities, flexible spaces, and central locations.

What Can Agents Do To Help Millennial Buyers

So what kind of relationship do millennials want with real estate agents?

First, millennials are far more independent than previous generations when it comes to the opening stages of home buying.

They're leveraging technology like never before to research areas, look for homes, and investigate their features. Facilitating this process with cutting edge VR, high-res photos, and mobile apps will set an agent apart from the rest.

But the DIY independence of millennial buyers ends once a deal has to be made. Relatively inexperienced in the real estate process, millennials require help with negotiations, financing, and all the required legal paperwork.

This is where hands-on, communicative agents can really shine.

Sell The Lifestyle

As mentioned, millennials are interested in buying experiences, not houses.

Agents who want to appeal to this market should see themselves as lifestyle curators. Be prepared to paint a vivid picture of what life in a certain area is like.

  • What are the local attractions?
  • What are the must-attend yearly events?
  • Where is the city going culturally, economically, or politically?

So, what does this mean for luxury real estate?

Millennials are redefining the meaning of luxury real estate. The dream for many is no longer to just own a large property in a suburban development.

Affluent millennials are looking for central locations in dynamic, up-and-coming small to mid-sized cities, modern city condos, fixer-upper character homes in vibrant areas, or revitalized urban centers hosting creatives and entrepreneurs.

Luxury is no longer a commodity, a big house, and a car. Instead, it's a challenge to conquer, an adventure to undertake, or a story to tell.

If you're interested in learning more about the lifestyle that the city of Chicago has to offer, contact Terri McAuley online or call 1-312-330-3211 today!

By:  Terri McAuley

Chicago Condos for Sale

Cell: 312-330-3211

“Chicago’s Luxury Condo Specialist”

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