To say that millennials are tech-savvy is an understatement. In fact, millennials are often associated with the use of social media, not recognizing the power that comes with their digital knowledge. They are digital natives. They hang out on social media 24 hours a day, seven days a week. Even at work, they are the most advanced when it comes to technology. They use the latest gadgets and are the most adept with digital tools.
According to a study conducted by the Pew Research Center, more than nine in 10 millennials, who are between 23 and 38 years old, have their own smartphones. The majority of this age group is also on social media. This familiarity, or better yet, expertise on digital technology and the online world, allows them to be more in control of their transactions.
It isn’t just about posting photos on Instagram and tweeting about everything that’s been happening in their lives. It’s just not about sliding direct messages and watching YouTube videos. It is more of using the online space to facilitate their matters. They use their gadgets and the Internet to manage their responsibilities as they grow older.
And even with their investments, they are digital. They use the power of technology to process their investment transactions, especially when buying properties. No wonder it’s the millennials now who are dominating the property market. And, not only do they dominate. They do it in such a tech-savvy style.
Millennials and their home preferences
According to the National Association of Realtors, millennial buyers have been the largest group of home buyers in the market since 2014. Both the younger millennial group, aged 22 to 30 years old, and the older millennial group, aged 31 to 40 years old, occupy the largest share in the market.
According to the figures, the millennial age groups prefer buying new homes, with the most common purchase being detached single-family homes among all generations. Millennial buyers, though, also prefer townhomes apart from family homes. Townhomes are built for on-the-go home buyers, usually for two to three persons only. Compared to family homes typically bought by those starting their own families, townhomes are usually short-term.
These figures show the purchasing power of millennials, who are often described as career-driven, independent, and wise when it comes to handling money. There have also been studies that millennials tend to delay marriage, which explains why they prefer townhomes over family homes.
Millennials also prefer living alone. There’s the constant struggle to prove to everyone that they can stand on their own feet. And, as data shows, millennials tend to earn more than other generations, which shows that they can buy their own homes and provide for their own. Being career-driven, they are also the age group that prioritizes stability over luxury. They know how to handle their finances, and they do invest in what they believe will help secure their future.
How millennials use their digital expertise in buying properties
Millennials are using the digital tools available when it comes to buying new homes or properties. A 2017 report from the National Association of Realtors said that almost all millennials go online to learn more about real estate being sold in the market. They also use the Internet to check mortgage offers.
There are also available mortgage calculators, which millennials use all the time. All they have to do is to visit the mortgage company’s website. Some websites have their own mortgage calculator and tool for quoting, which allows users to easily assess their financial capacity in applying for a mortgage. Emails and text messages are also becoming a more common form of communication between property buyers and realtors. With this, millennials have an advantage.
They believe that searching the Internet about properties allows for quicker and better communication. Before, buyers talk to brokers to get information about properties. These days, millennials research properties on sale by themselves. They only contact brokers when negotiating the property’s price. Onsite property visits are also becoming uncommon now that photos, live streams, and property tours are easily available.
Millennials’ focus, priorities, and direction should never be underestimated. They know where to put their money and how to use it to their own advantage. They also know how to use their resources and their skills to make their transactions more efficient. As millennials continue to dominate the market, the real estate industry is also adjusting to their needs and their demands. Because looking at the statistics, it seems that there is no stopping millennials yet when it comes to investments.