Members of the millennial generation now own 52 percent of American homes. Born between 1980 and 1994, this group made the U.S. housing market red hot over the last five years, buying seven million homes between 2017 and 2022. But there are still plenty of millennials, as well as members of Generation Z,  entering the housing market. How can you target these buyers?

Potential for growth

Unlike previous generations, millennials and Gen Z took on significant college loan debt, making it difficult to finance a home purchase in the years just after finishing their education. As these individuals pay off this debt, however, their generations have the potential to fuel the most significant growth in home ownership in U.S. history. REALTORS®, who are prepared to coach young first-time buyers on the purchase process, the paperwork, the mortgage process, and closing, can not only help these clients navigate a home purchase but win the lifetime loyalty of these buyers.

What you need to know about millennial buyers

• Money matters to younger buyers, who weathered tough economic times during the Covid-19 pandemic and may still be dealing with college debt. This may mean they are interested in smaller homes than previous generations.
• Because millennial buyers don’t want to spend a lot of time on home maintenance, houses with surfaces such as hardwood floors and easy-to-care-for countertops are appealing. These buyers also prefer smaller yards. Emphasizing the simplicity of caring for these features is a wise move.
• Open floor plans are popular with millennials. So are flexible spaces that can be used for several purposes. For example, a room that older generations might have used for dining may make a perfect home office for a younger buyer. Focusing on the versatility of a home’s spaces will appeal to millennial buyers and Gen Z.
• Urban homes are more attractive to millennial buyers than to previous generations since they are close to jobs and entertainment. But suburban homes, particularly those with good schools and abundant entertainment and work options, still appeal to younger buyers.
• Because millennials tend to be environmentally conscious, it pays to emphasize a home’s energy efficiency and any green building materials used in its construction.
• Millennials and Gen Z have grown up around technology and are comfortable using it. Focus your efforts on online listings with quality photos and videos.

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