“If you think it’s already hard to find a bargain in the Southern California home market, imagine adding a youthful flock of 2.76 million potential house hunters to the equation.”
– The Orange County Register
You read it right. 2.76 million Southern California millennial homebuyers (those born between 1981 and 1996) are and will continue to seek to purchase a home. To bring it into perspective, this is equivalent “to 276,000 more locals needing a home yearly vs. an average 42,000 new housing units created annually.” – The Orange County Register
Zillow revealed that 2.08 million individuals will turn 33 years old – the median age of a first-time home buyer in Los Angeles and Orange County – in the next ten years! That’s 12.2% more than the previous ten years. Living with parents or sharing a home with roommates just won’t do it for this group.
The hard fact, however – which is great for home sellers – currently there is high (and growing) demand from millennial homebuyers looking to purchase a home, but inventory is low. And as mentioned before, when homebuyer demand is high and inventory is low, an opportune time is created for sellers to list before competition increases. More buyers equals increased opportunities for creating a bidding war, which in turn allows you – the home seller – to sell your home for more and in less time.
Now, what are some of the unique features millennials are looking for? Outside of location, budget, and the standard home features meeting millennials’ needs, this group is looking for two interesting aspects of a home: a designated work area AND a pet friendly space.
Designated Work Area
In between the combination of more employers allowing their employees to telecommute and the increasing number of millennial entrepreneurs, there is a growing number of millennials starting to work from home and/or telecommuting. If you have ever worked from home, then you know it comes with its ups and downs. On the upside, you are able to work in the comfort and flexibility of your own space, on the downside however, you can easily find yourself distracted by any number of household things and/or feel disconnected. Accordingly, millennial homebuyers are seeking a space where they can focus and feel motivated to work from home. They are looking for a space that:
1) Allows for creating an atmosphere that is conducive to professionalism and creativity,
2) Is located near a window shining in the sun’s beautiful radiance, and
3) Is a carved-out for work only – one in which he / she can maximize their productivity.
Pet Friendly Space
In addition to working from home, millennials are looking for pet friendly spaces for their “little” companions. According to the American Pet Products Association, nearly 75% of millennials currently own a pet. They are craving comfort, and that includes:
1) Appropriate outdoor space for their pet to run and play – or a neighborhood that is walking distance to a dog friendly park or café,
2) An indoor nook created just for their pet to comfortably sleep, feed, and enjoy, and
3) Overall a pet-friendly community / neighborhood to grow in.
In short, with the substantial rise in millennial homebuyers entering the market, there is no denying the fact that they are changing the real estate world and impacting residential trends like never before. If you are a millennial looking to purchase a home, or a home seller seeking to take advantage of this real estate opportunity, please contact me so I can answer any questions you may have.
As always, if you need any help listing or buying a home, please don’t hesitate to reach out.
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