What do millennial and Gen Z homebuyers look for?
Millennials, also known as Generation Y, currently make up the largest age-range population in the UK – surpassing Generation X, the Baby Boomers, and the older generations, with Generation Z not far behind. This means that these two generations have the most potential buying power, becoming the biggest driving force for economies around the world – and the housing industry is no exception.
Despite the countless thinkpieces on the rising cost of housing and the millennial preference for avocado toast over home ownership, there’s still demand for affordable homes from first-time buyers in Generations Y and Z. So, what can builders, developers, and sellers do to attract them?
With global recessions following the tough years of the COVID-19 pandemic, younger homebuyers are looking for some reliability. Here are some of the things you could be doing to reassure Gen Z and millennial first-time buyers that they can trust in their investment if they buy your property.
The classification of millennials is hotly contested, but the term generally refers to people who were born between 1981 and 1996. The oldest millennials are therefore in their early forties, likely with young families, while the youngest are in their mid-twenties and perhaps looking to settle down.
Between student loan debt and inflation fast outpacing stagnant salaries, it’s no surprise that the top concern for millennials looking to buy homes is affordability. This age bracket also tends to look for:
Millennials want low-maintenance homes with all-modern amenities, usually within walking distance of public facilities like coffee shops, gyms, and schools. This is why new-build housing developments just outside of urban centres are becoming more and more popular.
Of course, as the first generation to grow into adults while earlier technologies were still rapidly developing, millennials expect high levels of functionality in their homes. Smart technology in the house itself is an attractive perk, but so is taking communication and sales online.
The up-and-comers of Gen Z are categorised as being born between 1997 and 2012, with the oldest Gen Zs now in their early to mid-twenties. Young adults these days may be waiting longer than their parents to buy their first home, but the ambitious Generation Z often sees 25 as a deadline for this.
But what exactly do Gen Z want out of their potential first homes? As the younger generation who have grown up with instant gratification from on-demand information, they’re typically looking for:
Most of Gen Z also don’t remember a world before 9/11 and the modern fear of terrorism, making them one of the most risk-averse generations. This means they’re much more picky and wary of problems, needing more persuasion to make them confident in the quality of your property.
Of course, they’re also the most tech-savvy generation, so it shouldn’t be surprising that the key to winning over Gen Z homebuyers is to speak this language. Even more so than millennials, Gen Zs like being able to do as much as possible online – from virtual tours to online applications.
The simple answer to the issue of gaining the trust and interest of Gen Y and Z is to utilise online services. From advertising to applying for mortgage and insurance contracts, it’s much easier to do things digitally, and much more appealing for younger people with faster-paced lives.
The things that link millennial and Gen Z homebuyers are expectations of quality and reliance on technology. They prefer a simple user experience with a streamlined service, usually including:
Essentially, both Gens Y and Z want as much information about a property as possible to reassure them before they commit to anything, and if they can access that information online by themselves – all the better. When over a third of millennials and Gen Zs would even purchase a home online without even physically viewing it first, you can’t overestimate the importance of digital services.
Millennials and Gen Z are looking for security and trustworthiness when they’re home-hunting. One way to gain trust and prove your reliability is to have a building warranty in place from the start of construction on your property (whether it’s a new-build or a conversion of an existing building).
A structural warranty from a third party reinforces your statements about the quality of the home, providing a guarantee that the Gen Y/Z buyer won’t be left high and dry if something goes wrong with the structure down the line, because this policy helps to protect their financial investment.
Not only will it validate the quality of your work and give them peace of mind, but building warranties can also help with their mortgage applications – improving their chances of being able to secure the home they want. And if the property doesn’t have a structural warranty yet, it’s easy for them to get one by applying online. For example, you could request an ABC+ Warranty quick quote in minutes.
As expert providers of building warranties covering structural defects in all kinds of properties, you can contact Architects Certificate for advice in this area whenever you need us. Simply send an email to firstname.lastname@example.org and we’ll respond with the answers to your queries.