Contrary to Popular Opinion, Millennials Want a Home in the Suburbs
“It’s an urban myth that millennials will always live in urban apartments,” said Colleen Sharp, vice president of The Futures Company, addressing a crowd of builders at last week’s PCBC in San Diego.
Sharp was one of several speakers addressing the needs and aspirations of millennial, or Gen Y households. Most sought to reassure builders that as this generation ages, marries, and has children, it will move to the suburbs.
This may already be happening among older millennial households, according to a survey issued earlier this year by the Urban Land Institute. While only 26% of Gen Yers own a home, the percentage is much higher, 47%, for those 31 to 36 years olds.
“When you isolate older from younger,” Sharp said, “millennials are exhibiting the same trend of moving from urban to surburban locations as previous generations.”
Yankelovich Monitor survey shows that homeownership is one of the top three goals of the millennial generation. Seventy-four percent of respondents said owning a home is an important goal. Which raises the question: What is this cohort looking for in a new home?
Open floor plans, connections between indoor and outdoor spaces, and the ability to personalize their home, according to Carl Lagoni, vice chairman of Bassenian Lagoni, an architectural firm based in Southern California. The list isn’t much different than the one for their parents. “There are lots of similarities between [the wants] of baby boomers and Millennials,” he said.
Mike Woodley of the Woodley Architectural Group based in Denver, said the group is looking for authenticy in a home. “They don’t need a flashy, pretentious home,” he said, adding that millennial buyers aren’t afraid of getting rid of the dining room or living room.
Though saddled with debt now, 70% of respondents to the ULI survey said they expected to be homeowners by 2020. As with previous generations, price will figure prominently in their buying decisions. When asked for the most important characteristics of their future home, respondents listed purchase price first, by a wide margin, followed by interior design and interior space.
PCBC speakers identified at least two other Gen Y hot buttons worth noting. Current technology is the first. Better Homes and Garden Real Estate reported that 84% of 18 to 35 year olds believe that updated technology is essential in a home.
Green products and technology is a second. But given that green homes often sell for a premium, desire for them is likely to be tempered by economic reality.
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Boyce, great point which we've been telling for years and the demand is only going to increase. Sure city life is fine for the rich, the young and those that are trapped. Unfortunately most of today's larger cities are seeing tax increase (sales & wage), educational services falter and crime on the rise - all factors in pushing those that can afford it to move. At the same time many say the "American Dream" is available to fewer and fewer. At AmeriSus the bulk of our new homes are in the suburbs, they are smaller and in high demand. You do not have to buy a McMansion or spend your retirement savings to get into a new affordable home in the suburbs. For those nay-sayers the last few small eco homes we built averaged 1500 sq. ft. They had porches, yards and parking. Taxes were low, crime non-existant, local shopping plentiful as well as professional services.