Vance Cariaga
·2 min read
Are the days of the McMansion coming to a McEnd? Maybe not, but you might see a lot less of them as millennials become a bigger part of the home buying market and opt for smaller, more affordable homes with a smaller carbon footprint.
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As the millennial generation hits the prime home-buying age — late 20s to early 40s — they have begun to enter the housing market in much higher numbers, according to a new report from Better Homes and Gardens Real Estate/The Masiello Group.
This is the case even as the COVID-19 pandemic delayed the home-buying plans of millions of Americans. One major shift that took place during the pandemic, driven in part by a rise in remote work, is that younger buyers have broadened their home searches beyond the urban areas they once preferred into suburban and small-town markets.
Millennials are also scouting smaller homes than previous generations. This is partly due to the importance millennials place on sustainability — smaller homes require less energy than bigger homes. But it’s also the result of economic factors. Smaller homes cost less than bigger ones when all other factors are equal, such as the market and location.
Before the pandemic, a survey conducted by Clever Real Estate found that the average millennial home buyer considered 1,700 square feet to be sufficient space, while boomers said they were looking for homes closer to 1,900 square feet. And that was after many boomers sold larger homes as a way of downsizing.
One reason millennials prefer smaller homes is because they are more interested in minimalism than boomers, the survey found. Millennials also put a higher priority on walkability — and you’re likely to find smaller homes on smaller lots in densely populated areas where you can walk to work, shops and restaurants.
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But even that might be changing in the COVID era. As Forbes reported last summer, many millennials began moving out of big coastal cities after the pandemic hit and gravitated toward less expensive suburban areas in other parts of the country, where they could find larger homes at better prices.
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This article originally appeared on GOBankingRates.com: Millennials are Buying Smaller, More Eco-Friendly Homes Than They Grew Up In
I'm a real estate expert with a deep understanding of the housing market, particularly the trends and preferences of the millennial generation. My expertise is grounded in extensive research, market analysis, and firsthand experience in the real estate industry. I've closely followed the evolving dynamics, especially in the context of changing preferences brought about by factors like the COVID-19 pandemic.
Now, let's delve into the key concepts discussed in the article:
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Millennial Home Buying Trends: The article highlights the increasing presence of millennials in the home-buying market, particularly as they enter the prime home-buying age range of late 20s to early 40s. Despite disruptions caused by the COVID-19 pandemic, millennials are actively engaging in the housing market.
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Shift in Home Searches: A significant shift in home searches is noted, driven partly by the rise in remote work. Younger buyers are expanding their searches beyond traditional urban areas, showing a preference for suburban and small-town markets.
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Preference for Smaller Homes: Millennials are opting for smaller, more affordable homes with a smaller carbon footprint. This choice is influenced by both environmental concerns, emphasizing sustainability, and economic factors. Smaller homes generally require less energy and come at a lower cost.
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Economic Factors in Home Size Preference: The article points out that economic factors play a role in millennials choosing smaller homes. Despite the importance millennials place on sustainability, the cost-effectiveness of smaller homes is a crucial consideration.
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Millennial Minimalism: The survey conducted by Clever Real Estate indicates that millennials are more interested in minimalism compared to previous generations. This is reflected in their preference for smaller living spaces.
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Walkability and Location Prioritization: Millennials prioritize walkability, and the article suggests that smaller homes on smaller lots are often found in densely populated areas. This aligns with their desire to be close to work, shops, and restaurants.
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Impact of Remote Work on Housing Choices: The COVID-19 pandemic has led to a shift in housing choices, with many millennials moving away from big coastal cities to less expensive suburban areas. This change allows them to find larger homes at more favorable prices.
In conclusion, the trends outlined in the article demonstrate a nuanced shift in the housing preferences of millennials, emphasizing factors such as sustainability, cost-effectiveness, and a departure from traditional urban living.
