Millennials Buy Homes Differently Than Previous Generations

According to "Real Estate in a Digital Age" from the National Association of Realtors, 40 percent of home buyers turned to newspapers to begin their home search in 1964. Fifty years later, the newspaper is replaced by the internet with 43 percent of potential home buyers beginning their search online. There are now apps to notify buyers when homes come available in their neighborhood of choice and virtual tours that provide a feel for numerous properties, without having to drive all over town. One prediction about the future of real estate that has not come to fruition: the elimination of real estate agents. Eighty-seven percent of buyers still used the services of a Realtor when buying their home in 2014.

Millennials embrace the digital age

Browsing homes online lets young home buyers take their time, and they do. They will typically spend 11 weeks searching for a home compared with 8 weeks of search time for older baby boomers. The newest generation of home buyers also tend to be more particular. Using the internet does not reduce the number of homes they want to see in person. People using the internet will want to look at about 10 homes during a 10 week period of home searching. People not using the internet will spend less time looking and view about one home for each week of their 4-week search, according to the NAR report.

Young buyers multitask and want smartphone apps

While more than 90 percent of real estate companies have websites to feature their listings, many overlook making their website mobile friendly. Realtors use their smartphones to communicate with clients and service providers throughout the day. Many of those home buyers use their smartphone more often than they do their personal laptop or home computer. Young buyers have a lot going on in their lives and grew up in a fast-paced, ever-changing world. When new technology comes along, these young buyers more easily accept the change than older home buyers. And, often, more quickly than real estate agents from a different generation.
While staying up to date with new technology is a major challenge for agents and companies, it is also an essential part of maintaining a stable and profitable business.

Profile of Millennials

The average Millennial home buyer is between the ages of 24 and 35. They do not have any children and their median annual income is $84,500. They are the largest group of first-time home buyers at 68 percent. Twenty-nine percent of first-time buyers are 35 to 49 years old from Generation X. The 24 to 35 age range buyers accounted for 32 percent of all home purchases in 2014. Ninety-four percent of these young buyers use the internet to search for homes. That is 10 percent more than the percentage of Baby Boomers who searched online. Only 65 percent of people from the Silent Generation (born 1929 to 1939) use the internet for their home search.

What devices are they using?

IBM claims Macs are making their life easier, saving money, making money, and reducing the need for tech support. Millennials find Apple products suit their tastes, too. Fifty-eight percent of this new generation of home buyers used an iPhone for their home search. Forty-six percent conducted their search with an iPad. Only six percent searched homes with a Windows based mobile device. Baby Boomers used Windows products slightly more. Only 35 percent of them used an iPhone for their home search in 2014. Eighteen percent of Silent Generation buyers used an iPhone. Fifteen percent of that same demographic used a Windows based mobile device.
Many buyers of all ages search online prior to contacting a real estate agent. It is important for agents to keep their name and contact information in front of these buyers and themselves readily accessible to answer questions and provide information on possible properties.