When it comes to owning a house, millennials are just like everyone else. They want a house with their name in it, too. This group of young people may be more on the relaxed and laidback side, but they also work very hard. One National Housing Survey showed that 96% of millennials are optimistic that they will own a house one day. The study also notes that the reason why more yuppies opt renting today is to be financially ready in buying their own home in the future.
The choice of housing for most millennials is condominiums. Remember that this is a generation that is used to having everything at their fingertips — instant, 24/7, one click. In developing countries like the Philippines where BPO industries thrive, residential condos and offices are in one community, making condo living very convenient to young professionals. Living in a condominium community also promises a safer and more secure environment. Several real estate developers like DMCI Homes go beyond convenience and offer exclusivity, luxury, and the comfort of your very own sanctuary in the middle of the city.
Trends in millennials’ spending power and purchasing mindset are really something that realtors have to understand if they were to cater to this growing and powerful market. Here are ten things you should know about the millennial condo owner.
They have the (spending) power
Millennials form the biggest chunk of the workforce, overtaking baby boomers. And they also lead the pack when it comes to spending. Starting 2017, millennials or those between the ages 17 to 34 are expected to spend around $200 billion annually and $10 trillion in their lifetimes. Never underestimate the millennials. They may look young but they certainly know how to spend. They are drivers of the economy.
They are getting ready
It is the ability not the desire that is keeping millennials from owning and buying homes. They don’t intend to be renters or freeloaders at their parents’ homes forever. They want to own homes and they are working on it. It’s just that they can’t afford it yet. This doesn’t mean that they are not a viable market now, especially with payment terms made more flexible and affordable to cater to their financial standing. The most important thing now is they have the heart for home ownership. One US survey revealed that 69% of millennials believe that owning a home is a smart decision.
They like the city life
The white-fenced lawn and suburb style of living is very comforting but the millennials like it where the action happens. The metropolitan feel appeals best to millennials. They like their world right outside their doorstep, that is why millennials owning a condo is a popular choice. A Nielsen study found that 62% of millennials prefer to live in the type of mixed-use communities found in urban settings. In fact, they are already living in these urban centers at a higher rate than any other generation.
They like it social
Millennials are social beasts, online and offline. They have a very personal relationship with their mobile devices but they also like going shopping, clubbing, and dining out with friends. The desire to live in more socially-conscious and creative environments makes condo living a runaway winner among millennials.
Advertising can’t fool them
Millennials can see through an advertisement. A study by Forbes and Elite Daily found that only 1% of millennials said that a compelling advertisement could make them trust a brand. The millennials’ buying behavior is not influenced at all by advertising, which they think is all spin and not authentic. This is why they avoid commercials and banner ads on websites and social media networks.
Information is at the tip of their fingertips so expect them to use every device they can get their hands on. The Forbes study revealed that 33% of millennials review blogs before making a purchase. They rely mostly on social media as they find it more authentic. Comments, blogs, and content by their peers are what matters to them.
They like comfort
Who doesn’t want to live comfortably? Millennials sure do. There is nothing like living a few meters away from your workplace, nothing like skipping traffic and long commutes, nothing like living in a resort-inspired environment where everything looks and feels like being on a vacation. They also don’t mind spending extra in exchange for comfort and convenience.
Amenities are a big deal
Condos in the Philippines make a big deal out of exclusive and world-class amenities. And they should because millennials want to know about them. A research by Redfin found that millennials like to be close to everything they need. Amenity-rich living is something millennials don’t mind paying for — pool for an early morning swim, 24-hour gym to keep them fit, parks and playgrounds for weekend picnics, and a clubhouse to keep people together.
Size matters and they want it small
James Roche, chief executive of Houseplans.com, said boomers and millennials prefer smaller spaces today. They want a space that is functional, flexible, and cost-efficient. Millennials don’t want a traditional dining room anymore but a multipurpose space for everyday affairs. Efficient space-saving is among the tips for every first-time condo owner and this means living comfortably with only the furniture you will ever need and using a modern design that values every space and every corner.
Schools should be near
Not only are millennials thinking about owning a home but they also think about having their own families and raising kids. They want a child-friendly community. A survey by realtor.com also revealed that 52% of millennials said that the quality of schools near or surrounding a condo community could make or break a deal. This is the advantage of condos in the Philippines as good and exclusive schools are normally just a stone’s throw away.
Millennials are an ideal market because they know exactly what they want. They care about making smart decisions. They work as hard as everyone else to prepare themselves for what truly matters — investments, retirement, family, and home.