Millennials now overtake Baby Boomers as America’s largest generation how will that affect housing.
There are as many as 10 million people now in the millennial generation in Canada and 92 Million in the US Born between 1980 and 2000.
In Canada that accounts for 27.5 % of our population. That sheer size makes them the largest generational demographic in the country. It also suggests there are more people between the ages of 18 and 35 working in the labor force today than ever before.
Millennials have been the largest share of buyers since the 2014 report. Eighty-two % of Younger Millennials and 48 % of Older Millennials were first-time home buyers, more than other age groups.
Millennials want homes that are both affordable and spacious, especially as we enter an era of remote work and decreased access to public spaces. Nearly one-third of millennials (30%) say COVID-19 pushed them to begin house hunting earlier than they originally planned, this is why Vancouver Island and Nanaimo are becoming more attractive.
The new suburban
Millennials are leaving the bright lights behind. Last year less than 15% bought in an urban area, down from around 21% a few years ago. But the big change is that they are not embracing strip malls and Highways of their childhood suburbs. Rather they seem to be choosing smaller communities, those mixed with both suburban and urban features. Mainly due to better pricing and better condition of the homes. Another important factor is quick access to open green spaces and public schools which Vancouver Island has in abundance.
Did you know Nanaimo has around 2,000 acres of green space? Of those 2,000 acres, 85% is natural green space. Within the Official Community Plan, the city has set the goal of ensuring that 90% of residents live within a five-minute walk to a park or trail.
But with home prices leaping 8.4% in the past year — and projected to rise an additional 10.5% in 2021, millennials are facing the reality of skyrocketing demand and vanishing inventory.
Millennials now want a home of 2,400 square feet as opposed to the 1,700 square feet they wanted before the pandemic. The NAR says that most millennials want three bedrooms and two full bathrooms. Having enough space for a growing family in the future is an important factor: when buying a new home, they’re planning on keeping that home for at least sixteen years.
Millennials, comfortable with the digital age, are much more prone to buying a home without actually viewing it first. In fact, 29% would buy sight unseen, relying instead on photographs and virtual tours. For over a decade we have lead the industry with our exclusive display which has included interactive floor plans and our Real 3d because our goal has always been to create a more engaging interactive experience for buyers of all types.
Many millennials discovered the joys of cooking and baking during the pandemic, so a large kitchen is another feature is at the top of the list!
Millennials not only want to grow their own gardens but they also want to entertain or even work outdoors so they love features like decks and patios. Making Outdoor living space another feature on their checklist.
It’s important to be visible online. Providing an engaging website with a well-thought-out user interface and seamless customer support can make your property stand out from competitors.
There is no doubt about it, millennials will have the largest buying power in the coming Real Estate cycle. The Covid pandemic has created a shift in this buying cycle to areas like Vancouver Island. We need to be able to meet this demand and build forward-thinking, sustainable quality developments like The Ridge and The Foothills Communities are creating in Nanaimo and Lantzville.
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