Millennials are at an age where they're eager to become homeowners. They're raising children, building themselves up as active members of their community, and looking for homes where they can grow. Therefore, it's important that you understand the home buying trends of millennials and how they can impact your homeowner association.
Single-Family Dwellings
When it comes time to buy, 83% of millennials are looking for a single-family home. They have a romantic notion of home ownership that includes raising their children in a place that is uniquely theirs. For this reason, most home buyers are looking for a house: not a townhouse, a duplex, or an apartment, but a single piece of property that is uniquely theirs.
Online Shopping
Today's buyers aren't only looking at real estate listings or chatting with their real estate agent. They're doing a large percentage of their house shopping online. Before they dive in and make an offer on a house, they're going to see what others have to say about the property and the area. Is the HOA known to be fair? Does it offer support to homeowners, or is it an endless source of rules battles? Chances are, if your HOA is negatively represented online, your homeowners are going to have a hard time selling homes in the neighborhood.
Renting Long-Term
Today's home buyers aren't jumping in and buying a home fresh out of college or as soon as they get their first job. The average millennial rented for at least six years before embarking on the home buying process. As an homeowners association, that means you're getting owners who have dealt with associations in the past. They're used to rules and regulations--but they're also used to having things like basic maintenance taken care of for them. By offering support to your homeowners, from having the right number on hand to call a plumber when there's an emergency to providing pest control services to the entire neighborhood, you'll create a more appealing environment for millennial buyers.
Millennials aren't looking for offline communication methods. Newsletters dropped in mailboxes or posted on message boards in the community locations are unlikely to appeal. Online communication methods, on the other hand, are the bread and butter of many millennial residents. They want:
- Social media platforms where they can chat with other members of the community, including Facebook groups
- Web pages where they can check out the HOA regulations, find out the next meeting time, or discover other key information about the community
- Emailed newsletters and other critical information
Finances
Millennials are saving longer to come up with the right down payment for a house before they dive in. Many of them, however, are finding that their saving efforts aren't quite enough to meet their needs. As a result, they need HOAs with comparatively low fees, especially during the early years of home ownership. On the other hand, if your HOA offers services that can reduce the ownership costs of homeowners, it can help balance these fees.
Millennials currently make up the largest percentage of home buyers. As a result, your HOA should consider adapting in order to meet the needs of this large population. By ensuring that you've created a solid platform for communication, an HOA that meets their needs, and a strong online presence that will allow them to discover the benefits of residing in your community before they move in, you'll be able to appeal to a millennial audience and increase the number of them who are interested in moving into your community. In fact, for many, the HOA may be one of the deciding factors in whether or not they'll move into the community--and if you play your cards right, it could be an item in millennials' plus column.
Amanda Causey
Guest Blogger
