Millennial mindset and the homeownership experience
Millennials. They’re everywhere. Literally. Preceded by baby boomers and Generation X, the millennial generation, born approximately between 1980 and 1995, comprise a quarter of the world’s population. That’s 1.7 billion people worldwide and 90 million1 in the U.S. alone2. They are the largest generation in history.
That’s a lot of people who thrive on social connection, fully embrace technology, are highly educated, and tend to do things their way. They have the potential to largely impact all facets of our society. And in many cases they already are changing the way businesses are run, money is spent, people interact—and technology plays a large role in all of this3.
The millennials-and-technology connection
Conceivably millennials are the first generation to have been raised on technology. It’s always been part of their lives, so it only makes sense that it continues to factor in heavily and influence how they work, interact with others, travel, shop, conduct business, and live and function in and around their homes1.
Approaching life from a unified framework
Millennials don’t compartmentalize their lives. There’s no separation of attitudes toward home, work, health, or family, for example. They tend to approach everything they do—in both their physical and digital lives—from the same framework and mindset. They are a “social, community-driven generation that values the voice of the individual.”1
Seeking a balanced life through technology
Millennials are seeking a more balanced life with this holistic approach, which translates into a need to be in the know. They want information about companies and how they operate and what they produce.
Always with an eye on the community, millennials want and expect products to do more for themselves and their environment. They are multitaskers that thrive in a “fast-paced world” and want convenience, the ability to stay connected, and the option to be in control.
And this affects how they approach purchasing a home and how it functions in their lives. Take a look at Millennial home-buying trends1.
Millennial home-buying trends
Historically millennials have put off buying a home—63.6% of Americans own homes, while only 37% of Millennials are homeowners4.
Of course, younger millennials may be finishing up school and are not in a position to think about purchasing a home. For those millennials who could potentially own a home and don't, what’s preventing them?
Millennial homeownership challenges5
- 7 in 10 think getting a mortgage will be difficult; nearly 1 in 10 have given up completely.
- Up to 70% believe that based on their current economic circumstances getting loan approval will be problematic; 9% have already been rejected.
- 1 in 5 point to debt, including the burden of high student loans, as the factor blocking them from buying a home.
- 52% believe their finances are ultimately preventing them from buying a home.
Even though many millennials are putting off buying a home, they are the largest group of home buyers for the past four years.
Millennials are starting to buy homes
Despite those delays, millennials have comprised the largest group of home buyers for the last four years. Yes, they’re putting off buying a home for various reasons, but they are contenders and are far from absent in the real estate market6.
The majority of millennials who currently do not own homes have expressed a desire to purchase. And studies indicate that within the next 10 years the number of millennial homeowners will increase by 2.7 million2.
So what does millennial home ownership look like?
Millennials want a smart home
The smart home just makes sense for millennials. They live to stay connected, and a smart home is right up their alley.
With their tech-savvy and willingness to pay for innovation; their need for convenience and staying connected; and the flexibility they seek in home ownership, it’s hard to imagine millennials that don’t incorporate smart features and devices into their homes once they take the plunge into home ownership.