BUSINESS INSIGHTS: What Millennials want
Born between 1981 and 1996, this more established cohort accounts for roughly 30% to 42% of the market, according to Lightstone. Most millennial buyers are investing in urban areas, where access to employment opportunities and lifestyle amenities align with their preferences and priorities.
However, despite their growing presence, in a tough economic climate, many millennials are still grappling with affordability issues and have often been labelled the 'renter generation'.
But this narrative is beginning to shift. According to Ooba Home Loans, both first-time and repeat homebuyers are getting older, with the average first-time buyer now aged 35, and repeat buyers closer to 40, indicating that a significant portion of millennials may now be entering the property market in greater numbers.
In addition, as interest rates continue to stabilise and more millennials enter their peak earning years, many are shifting from renting to buying in search of stability, wealth creation, personal freedom and family-friendly living.
For those selling and looking to appeal to this generation, here's an easy checklist of general preferences: Affordability dictates everything: Location, size and features are chosen with budget top of mind. Many millennials are looking beyond high-demand areas where the value per square meter is better.
Location, size and features are chosen with budget top of mind. Many millennials are looking beyond high-demand areas where the value per square meter is better. Smaller homes or fixer-uppers: Budget-conscious and resourceful, millennials are open to projects, as long as the price is right and the long-term value is clear.
Budget-conscious and resourceful, millennials are open to projects, as long as the price is right and the long-term value is clear. Function over flash: This generation values clever, efficient layouts over large footprints. It's about making the most out of every square meter. With this in mind, they will be swayed by open-plan living, storage-savvy designs and multi-use rooms.
This generation values clever, efficient layouts over large footprints. It's about making the most out of every square meter. With this in mind, they will be swayed by open-plan living, storage-savvy designs and multi-use rooms. Sustainability matters: Millennials are eco-conscious. Solar panels, water tanks, gas stoves, and energy-efficient designs are no longer nice-to-haves – they're expected.
Millennials are eco-conscious. Solar panels, water tanks, gas stoves, and energy-efficient designs are no longer nice-to-haves – they're expected. Community-first living: Secure estates or gated communities with shared green spaces, parks, playgrounds and access to quality schools and shops are in high demand. Many millennials have young families, and for some, having access to all of these amenities is imperative.
Secure estates or gated communities with shared green spaces, parks, playgrounds and access to quality schools and shops are in high demand. Many millennials have young families, and for some, having access to all of these amenities is imperative. Home office space: A quiet, functional home office or flexible workspace is now essential for many millennials.
A quiet, functional home office or flexible workspace is now essential for many millennials. Pet-friendly homes: Millennials are the largest group of pet owners, and their furry companions factor into home choices. Gardens, pet-permitting complexes and access to parks are non-negotiables for many.
Millennials are the largest group of pet owners, and their furry companions factor into home choices. Gardens, pet-permitting complexes and access to parks are non-negotiables for many. Room to grow, and personalise: A neutral, well-maintained home offers the blank slate they need. Millennials want the flexibility to add their personal style gradually, without needing to renovate from day one.
As they enter their prime earning years and seek greater financial stability, millennials' presence in the property market is growing and with it, their influence.
For sellers and developers, understanding what drives this generation's decisions is key. Affordability, functionality, sustainability and lifestyle-oriented features are not just preferences – they're major priorities.
What are your thoughts? Share your experiences as a millennial homebuyer in the comments below!
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