Millennials, commonly categorised as those people born between 1981 and 1996, are a huge market demographic – and they’re wielding more force than ever before. There are a lot more of them than their Gen X counterparts, and now that they’re between 23 and 38 years old they’re at the prime age to buy their first house.
In fact, one in three Australian millennials are already home owners, with the vast majority of the remainder hoping to buy within the next three years.
Rising house prices keep them at home or in the rental market for longer, but it’s not for want of trying. If you’re selling your Australian property, chances are that you’ll have some millennial would-be buyers at your open inspection.
But what do millennials want, and how can you market your home to attract this powerful group? Here are four things to highlight:
1. Character of the area
Millennial property seekers are less likely to spend their weekends at home than older demographics. They’re also more inclined to value experiences over material things, spending their money on health, wellness and travel instead of furniture and other possessions.
Accordingly, it’s important to them to live somewhere that reflects their interests and identity. For many millennials, that means hip bars and trendy cafes rather than leafy streets, with night life a definite bonus. Access to the CBD is important for all demographics, along with good local shopping centres and strong public transport links. To attract millennials, you’ll have to highlight the character of the suburb: edgy, hip and up-and-coming are all great selling points.
2. Property amenities
With a surge in higher density housing, many millennials are making their first home purchase an apartment or townhouse rather than the detached homes of yore. These properties often offer shared living amenities of a scale and standard that most of us couldn’t hope to achieve on our own, from swimming pools to state-of-the-art gyms and rooftop gardens. 24/7 security systems are another drawcard, especially for single female buyers – a demographic that outweighs single male buyers in the under-35 bracket by a considerable margin.
3. Transport links
High density living isn’t for everyone, and for those millennials with children of their own a little more living space is desirable. That’s why they’re turning their sights on outer suburbs, where a detached house is still within reach. To make the commute easier from these far flung suburbs, millennial pay close attention to transport links. A suburb with good infrastructure and fast public transport will be far more attractive than the sister suburb that’s badly serviced by buses and should be highlighted in the sale.
4. Rental appeal
Many millennials are taking a different tack to home ownership by becoming ‘rentvestors’ instead. An increasingly popular solution to housing affordability is to buy a place outside the suburb you want to live, rent it out, and use the income to rent your own living quarters in your preferred area. Other rentvestors stay living at home while managing an investment property in the hopes of building up enough equity to buy somewhere they want to live.
What that means for anyone trying to sell to millennials is that rental appeal can be an effective marketing hook. That young couple looking around your open might be doing so with an eye to renting it out rather than living in. They’ll be attracted by low maintenance modern finishes, outdoor areas which don’t require a lot of upkeep, and a great location with wide appeal for tenants.
Millennials, like any generation, aren’t a monolith. Tastes vary, and no matter what type of home you’re selling it’s bound to appeal to someone. That said, if you’re looking for a sale, remember that the millennial market is only getting stronger.