The way young people look for new homes has changed significantly over the past few years, and it’s likely to continue changing in coming years.
In 2023, the younger generation is expected to rely heavily on technology and online platforms to find and research their next-generation homes.
But why should you care about millennial homebuyers? According to the NAR, millennials make up the largest share of homebuyers at 43%.
However, one of the key challenges for younger buyers in 2023 is likely to be the competitive nature of the housing market. With low inventory and high demand, many millennial homebuyers are finding it difficult to find a home that meets their needs and fits within their budget. In order to stand out in the market, young buyers who want to become millennial homeowners will need to be proactive, and prepared to act quickly when they find a home they’re interested in.
Property research trends of millennial homebuyers
According to a recent survey of millennial homeowners, this group is most likely to busy themselves online when it comes to looking for new homes.
60% of millennial homebuyers use online resources such as real estate websites and social media platforms to search for properties.
Only 30% said they use traditional offline channels such as open houses and real estate agents. This preference for online resources is driven in part by the convenience and accessibility of these platforms. Many younger buyers are busy with work, family, and other commitments, and may not have the time or energy to spend driving around to open houses or meetings with real estate agents. Online platforms allow them to search for homes and access information from the comfort of their own homes – anytime day or night.
But the appeal of online resources goes beyond convenience. Millennial homebuyers are also drawn to the wealth of information and resources available on these platforms. Many real estate websites and social media platforms offer detailed listings with information about the features and amenities of each property, to include photographs and virtual tours that allow buyers to get a better sense of the property before they visit in person.
51% of all buyers find next-generation homes through the internet.
In addition, online platforms often provide access to a network of industry professionals, such as real estate agents, mortgage lenders, and home inspectors, who can offer millennial homebuyers guidance throughout the process. This can be especially helpful for first-time buyers who may not be familiar with market ins and outs.
While online resources are the primary hangout for younger buyers, this doesn't mean offline channels are completely out of the picture. In fact, many younger buyers still rely on traditional methods such as open houses, and real estate agents to find and research homes.
Real estate agents are undoubtedly a valuable resource for potential millennial homeowners. Their extensive knowledge of the local market can provide valuable insights to buyers. They can help buyers identify next-generation homes that meet their needs plus budget and can negotiate on their behalf to get the best possible deal.
Word of mouth and referrals are still one of the best ways to find new clients, even for millennials. This is because millennials value the opinions and experiences of their friends and family members, and are more likely to trust a recommendation from someone they know.
Asking friends and family members who’ve gone through the process, for example, can give realtors critical insight into how to market their trustworthiness. Many millennial homebuyers, in fact, actively seek out recommendations and referrals when making important decisions, such as choosing a real estate agent or mortgage lender.
The go-to channels of millennial homebuyers
One key trend among younger homebuyers is their preference for online channels when it comes to searching for new homes.
Real estate websites offer detailed listings of properties for sale – information for example on each property's features and amenities as well as photographs and virtual tours. Many real estate websites also allow users to search for homes based on criteria such as location, price, and the number of bedrooms, making it easier for buyers to find properties that meet their needs and budget.
Social media platforms such as Facebook, Instagram, and TikTok are increasingly being used by real estate professionals to promote listings and connect with potential buyers. Many millennial homebuyers are active on these platforms and use them to search for homes and connect with agents as well as other industry professionals.
Many real estate agencies have started using TikTok to share home-viewing tips and introduce new open houses. This is because TikTok has a large and active userbase of millennials. By creating short, engaging videos that showcase listings or provide useful information for homebuyers, agencies are able to target a large audience.
The use of TikTok as a marketing platform is just one example of how advertising to millennials is changing. Watch how innovative real estate agents are using TikTok to promote their properties.
Dependable real estate blogs like Serviceform’s Academy blogs can be a valuable resource for millennial homebuyers, offering plenty of information and advice. These blogs are typically written by experienced real estate marketers who have extensive knowledge of the industry.
One of the key ways that authoritative real estate blogs can help millennial homebuyers is by providing detailed and up-to-date information about the real estate market. These blogs often feature articles, guides, and other resources that cover a wide range of topics – from home-buying tips and trends to market analysis and industry news. By providing this information, authoritative real estate blogs help buyers make informed decisions about properties they’re considering and in becoming millennial homeowners.
Online marketplaces such as Zillow and Redfin offer a range of real estate-related services, including listings, market analysis, and home valuation tools. Younger buyers may use these platforms to research the local real estate market and get a better sense of home prices and trends in their area of interest.
Virtual tours offered through conversational landing pages are an increasingly popular feature on real estate websites and social media platforms, allowing buyers to explore a property in detail without having to visit in person. Younger buyers may use virtual tours to get a better sense of a property and its layout before deciding to visit in person.
But that’s not all. In addition to using online platforms to find homes, younger buyers are also likely to use a variety of channels to do research. This may include visiting open houses, contacting real estate agents through a chatbot or live chat, and reading online reviews from other buyers and sellers. They may also use tools such as mortgage calculators and home affordability calculators to help them determine how much they can afford to spend on a new home.
Millennial homebuyers will continue to use a combination of online and offline channels to find and research homes in 2023. But with a preference for online methods to find their next-generation homes.
Online channels such as real estate websites and social media platforms will remain popular among millennial homebuyers because of their convenience. Important for realtors is that these platforms will also allow users to quickly connect with industry professionals and services in making real their goal of becoming millennial homeowners.