Millennials are extremely conscious about the environment and are tech-savvy. They have their preferences all sorted and this factor can lead to a reshaping of the high-end real property market. According to a survey by the National Association of Realtors, millennials born between 1981 and 1996 constitute around 38% of the home buyers in the United States.
Early people wer in the habit of buying modest properties early in life. And then, they invested in larger properties before tying the knot and starting a family. However, millennials are changing the trend and are grabbing multimillion-dollar properties as first-time buyers. Consequently, they are now dominating the luxury real property market. Working remotely has been a factor of course.
What Are The Preferences Of The Millennials?
According to a recent report by the famous Brookings Institute, the millennials are the most educated and practical generation ever. And they have comparatively higher earnings and are on their way to inherit a lot more than the previous generations. Their character is that of tech-savvy. Aside from that, they are pretty much environmentally conscious individuals. That would drive them to bring around a dynamic change in the market.
After the onset of COVID-19, buyers began to buy homes in areas that are perfect for walking, take them closer to nature, and offer a high-quality life. From food to the art scene, these areas have almost everything to cater to them. Austin in Texas, Aspen in Colorado, and Montecito in California are the places that benefited the most.
It all boiled down to the difference between living where one works and choosing a place where you want to have a good life. Millennials always have their overall lifestyle in their minds while choosing a property. While the net sales volume in Colorado’s Aspen during the third quarter was over $1.5 billion, the median sales prices in Utah’s Park City increased by over 50% in the summer season.
Permanent Changes In Real Property Market
In the times to come, developers aim at boosting the sustainability credentials of new properties. Therefore, they are looking forward to adding high-tech features to the new buildings. The most attractive and popular features these days are solar panels, green roofs, and geothermal systems. Homes with features that make them environmentally conscious, attract a greater premium.
As a matter of fact, buyers are standing in a queue to lay their hands on such properties. All in all, the luxury real property market is completely poised for huge growth. Taking Sotheby’s International Realty survey into account, more than 60 percent of respondents said that they are expecting a hike in the prices of luxury homes in the next two to three years.
Factors That Can Inhibit Growth
Irregular distribution of vaccines and quarantine restrictions are in place all over again. This can prove to be a hindrance for foreign investments. One-third of those participating in the survey conducted by Sotheby said that they expect a rise in demand during the first quarter of 2021.
The rest two-thirds don’t see any ray of hope. In addition to that, the coronavirus pandemic has brought about a haphazard decline in tax revenues as well. To fill up the gaps in the budget, governments are doing a reassessment of wealth and property taxes. According to experts, tax implications are going to play a major role when it’s time for buyers to consider buying a property.
What Are The Risks?
The paradigms of home security are gradually changing as millennials are opting for wired homes. Of course, it becomes easier to answer to someone knocking at your door even if you are not around, it also poses a threat to your home as intruders can trespass into your property. Though home security is getting an upgrade the day, it has also become prone to hackers. Consequently, the enthusiasm for networked appliances among millennials has led to a boom in the industry of home cybersecurity.
Millennials are pretty much active in the real estate market and this scenario is not going to change anytime soon. While their previous generations opted for homes that provide suburban amenities, millennials choose networked homes. They are looking for homes that have ample attributes to suit their fast lifestyle, and serve all their purpose.