News & Advice Trending

changing-the-real-estate-market

Consumers under the age of 30 years old or millennials as they are more commonly called, are standing up and making their presence known in the real estate market, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

He adds that while it is the Generation X consumers, aged between 31 and 45 years old, who are still the driving force behind the property market, there are several areas around the country where millennials represent the highest percentage of recent buyers.

“There are approximately 18.74 million Generation X consumers in the country, however, Millennials account for around 28.4 million of the population. This up-and-coming generation will have a massive impact on the economy and more specifically the property market going forward. As the future decision makers, Millennials will be able to change the real estate industry as we know it and will largely influence trends that we see unfold. To a large degree, we are already seeing trends develop as more and more Millennials influence the dynamic of the real estate sector,” says Goslett.

He provides a few buying and lifestyle habits of millennials that will shape the economy and real estate industry:

Millennials would rather rent

There are a number of reasons that these younger generation consumers favour renting over buying.

Given the increasing cost of living and challenging economic conditions in South Africa, many millennials are opting to stay in the rental market a while longer. There is also the desire to stay in trendier, often more expensive areas they that would not afford to buy in. Renting offers them the freedom to pick up and go with relative ease.

While millennials want their own space, many feel that they are not ready to manage a property and prefer to have a landlord take care of the maintenance issues.

Most do value homeownership and will invest in a property as they get older, however, rising debt and delayed life events will delay the process. When they do purchase a home it is likely to be an entry-level home that they can rent out if they decide to move away.

Millennials are tech savvy

Millennials are heavily reliant on technology and are more likely to use online search portals to find a home they like than going through an agency.

In order to stay relevant, real estate professionals will need to have a strong online presence to successfully engage with the millennial generation. This includes a website with high-quality images of homes and an engaging social media presence.

Compact, efficient spaces

A large number of millennials are looking for a minimalist lifestyle which includes fewer possessions and smaller living spaces, as this provides them with both the flexibility and financial stability they want. Generally, millennials don’t want to spend all their time at home but see their living quarters as more of a home base.

As a result, they are comfortable in smaller, lock-up-and-go spaces. Many are also looking for homes with energy-efficient appliances and fittings so that they can reduce both their monthly living expenses and carbon footprint.

In order to cater to the wants of millennials, the industry will need to keep increasing its energy-saving home offering. Environmentally-friendly, multi-functional spaces are highly appealing to millennial home buyers.

“Millennials have already started to impact housing market trends and will grow in influence as their incomes increase and they begin to settle down. As this generation continues to effect change, the real estate industry will need to take their needs into consideration and innovate accordingly,” Goslett concludes.

This article “How Millennials Are Changing The Real Estate Market” was issued by RE/MAX Southern Africa.

Shares 0

Leave a Reply

You might also like...

How Millennials Can Save For A Deposit
Home Buying Homework For Millennials
10 Common Mistakes First-Time Home Buyers Make
4 Reasons Why You Should Sell Your Home During The Holidays!
Top Property And Design Trends For South Africa In 2017
Nine-Point Plan to Surviving the Downgrade
Future of Property in Sectional Title Sector
Unpacking new property legislation
South Africa’s Natural Attractions are Popularising Eco-Estates
Lightstone predicts a buyer’s market for 2017
Don’t Wait For “The One” Before You Buy a Home
Don’t Let Criminals Take The Pleasure Out Of Your Leisure
Comments: Budget on Economic Growth
Should You Ever Buy or Sell Property To a Friend or Relative?
New Generation Digs Now On The Rise
Western Cape House Prices Remain Steady
Investment hot spots – Waterfront and Clifton apartment prices hit historic highs despite economic lows
Sectional Title Scheme: NEW LEVY STRUCTURE Required!
South African Holiday Towns Now Underperforming Metros
Essential Questions For Home Buyers To Ask Their Real Estate Agent
Costs To Consider When Investing In Property
Co-owning Property With Someone Else: The Ups & Downs
Smaller Properties Yield Great Investments
8 Myths Preventing People From Real Estate Investing
Investing in Student Accommodation: Pros and Cons
House-Hunting in the Digital Age
Future of Property in Sectional Title Sector
St Francis Bay’s housing market attracting top dollar
Lightstone predicts a buyer’s market for 2017
Factors that determine property value
Pros and Cons of Buying Property Through a Trust
Don’t Wait For “The One” Before You Buy a Home
Purchasing Property And Compliance Certificates: Great Expectations?
Investment hot spots – Waterfront and Clifton apartment prices hit historic highs despite economic lows
Lightstone predicts a buyer’s market for 2017
House Won’t Sell? Here’s What You’re Doing Wrong!
Factors that determine property value
Create Home Buyer Appeal Through Home Staging
Is There A Difference Between Offers?
How To Decide When To Sell
Does My Agent Care About Me Or Just The Commission?
3 Questions To Ask Before Listing Your Home
I Just Bought A Home – Now I’m Unexpectedly Being Transferred
What Is The Difference Between Value And Marketability?
Time To Stage Your Home When Selling
Get Higher Offers On Your Empty Home
When Is The Best Time To Sell A Property?
How Important Is Financial Fitness For Home Sellers?
Real Estate’s Dirty Little Secret And Why It’s Costing You Money!
Average residential rental values on the increase
Is It Possible To Terminate A Lease Agreement Without Recourse?
New Generation Digs Now On The Rise
When Is Your Rent Due?
Gauteng Property Rental Market Forecasts Growth
Keeping Track of Parking On Common Property
How And When To Legally Evict Tenants
The Rental Housing Amendment Act: Waiting For Light In The Dark?
Tenants: Be Aware Of Ongoing Credit Checks
How To Rent With Pets
Is My Landlord Liable To Provide Security?
Why Are Property Inspections So Important?
Rental Property: To Furnish Or Not To Furnish?
Why Prevention Is Better Than Cure: Eviction Procedures For Landlords
Important Insurance Issues For Landlords
5 Mistakes To Avoid When Relocating
7 Tips For Packing And Moving Quickly
Moving? Things To Think About!
Maximising Small Spaces
7 Tips To Help Your Children To Adapt To The Move
What To Do With Your Home When You Have To Relocate
Moving With Pets Can Be Tricky
Estate Agent Moving Tips
Telltale Signs You Need A New Home
Seven Signs You Need A New Nest
Über Wealthy On The Increase And On The Move
Costs To Consider When Investing In Property
Smaller Properties Yield Great Investments
8 Myths Preventing People From Real Estate Investing
Own Fixed Property? You Need a Will!
Tax Tips for Landlords – What You Need To Know
The Perfect Investment Property
St Francis Bay’s housing market attracting top dollar
Factors that determine property value
Average residential rental values on the increase
4 Things Homeowners Waste Money On 
Pros and Cons of Buying Property Through a Trust
Comments: Budget on Economic Growth
Investment hot spots – Waterfront and Clifton apartment prices hit historic highs despite economic lows
First-Time Home Buyer Should Act Sooner Rather Than Later
Sectional Title Scheme: NEW LEVY STRUCTURE Required!
How To Protect Your Commercial Property Investment
Commercial property still important asset class for private buyers
Know The Risks Before Building Airbnb Castles In The Sky
Green Buildings Catching On In South Africa
Digital Disruption And The South African Commercial Real Estate Market
Can You Run A Business From A Sectional Title Home?
What’s Driving Change In The Commercial Property Sector?
5 Ways Commercial Property Space Planning Can Save You Money
Investing In Commercial Property an Attractive Option
3 Obvious Signs That It’s Time For Office Relocation
3 Things You Need To Know Before Buying Vacant Land
Price Correction In Commercial Property Market
South Africa: Evolution of Industrial Properties
The Commercial Times Are Changing
Healthy, Sustained Demand For Commercial Property