Millennials around the world don’t want to buy a home similar to mum and dads!
In fact many just want to live somewhere cool and pay what it costs to do that.
Until they can’t hold off any longer with lifetime goals.
Firstly some thought about Millennials and real estate and then the connection with crowdfunding. Millennials are people born between the early 1980s and the early 2000s.
- Millennials and Baby boomers are competing for the same properties, especially in the apartment space area. Places to walk and exercise, coffee shops and cool bars are important but what is more important is safe neighbourhoods and good school districts.
- Millennials are willing to put in large amounts in sweat equity (fixing up what they have bought). They are more informed than their parents as they have watched a plethora of TV shows that tell them what to look out for and where advantage can be had.
- They are well researched. They do their homework. Mostly online. They find their homes online not through real estate agents like their mum and dad.
- Social media reinforces the decisions they make by choosing real estate agents and others with high online reputations and digital responsiveness. Millennials expect customised content and digital interactions
- Millennial home buying will accelerate in the next five years as they move away from couple to families.
- Millennials often skip the starter home and start with what would have been the second home for their parents.
- Curb or footpath appeal was important to their parents but millennials want a big lawn or playing / entertaining area
- Internet connection and the ability to accommodate the tech savvy is a very important factor. No high speed internet? Difficult for a millennial.
- Millennials are now a larger generational group than baby boomers
- Millennials are more likely to respond to online marketing and communication efforts. Newspaper ads, flyers, brochures and mailbox drops are less likely to be effective.
- Millennials like working with wise and trusted people but they don’t accept paying as easily as their parents. They are used to getting information for free.
- Millennial home buyers are more traditional than millennial renters as they are looking to settle down and start a family.
- In some geographies Millennials aren’t buying the larger more elaborate houses built by baby boomers and this is resulting in too many very large homes in some places.
- They are more environmentally conscious so green features appeal to them
The global financial crises has meant that many millennials did not follow their parents and get their first home before or shortly after marriage. They have delayed key life decisions like home ownership, marriage and having children. Most have lived a lot longer in their parents home and probably have far higher credit card debt, student loan and borrowings than their parents. Many do not have the credit score that is necessary from prime lenders. Thats where crowdfunding comes in. By running their own campaign or using an established platform they can gather or aggregate people that can support them, believe in them and enable them to get the house of their dreams. Gathering funds through an online crowdfunding platform will became more and more important over the next 5 years.