As Millennials enter the housing market, we can expect more of the smaller homes to be sold. Panelists during an International Builders’ show’s press conference said that with Millennials, it is not the size of their home; it is the essentials, such as home technology that matters more. This certain preference could have been brought about by the fact that 3 million new jobs were created in 2014 and the reduced down payment requirements of first-time buyers.
According to NAHB Vice President of Research, Rose Quint, all these events led her to believe that more people will come into the market and as younger, first-time buyers, they will demand for smaller and more affordable homes. Other than that, based on the result of two surveys, Millennials will want homes that are energy efficient with master bedrooms, walk-in closets, a separate laundry room, and garage storage. Location-wise, 66% of them prefer to live in the suburbs, while only 10% said they want to stay in the central city.
We are very much aware that builders will build what demand calls for and at this point in time, that’s smaller energy-efficient homes. High-end outdoor kitchens with plumbing and appliances, and two-story foyers and family rooms are out!