The Latest Millennial Homebuyer Trends & Strategies

Here’s What Millennial Homebuyers Want & How They Can Get It

These days, most homebuyers are millennials. That’s according to the latest data from the National Association of Realtors (NAR), which also reveals that it’s taking longer for millennial homebuyers to find homes — and that nearly all of them are using digital tools and the internet as part of their homebuying process.

These fascinating trends in millennial homebuying are just the tip of the iceberg — and they’re making a distinct mark on the housing market in Texas and nationwide. 

Here’s why and how the latest trends with millennial and first-time homebuyers are affecting sellers and the housing market in general.

Millennial Homebuyer Trends: What Buyers Want & Why It Matters

First-time homebuyers and millennials who are shopping for houses tend to be looking for certain features while avoiding others. Specifically, millennial homebuyers tend to want:

• Exceptional locations: Whether commutes, schools, or access to the best local amenities is crucial, millennial homebuyers tend to be very sensitive to location. And many are focused on buying homes in safe, “high-quality” neighborhoods, prioritizing that over proximity to loved ones. Additionally, many Millennial homebuyers want locations with beautiful outdoor spaces where they can jog, hike, take dogs out, or otherwise enjoy nature.
  
  
• Move-in ready homes: Many younger homebuyers aren’t looking for fixer-uppers. They want to buy a house that doesn’t need any major work or renovations, and many are willing to pay for that move-in-ready convenience.
  
  
• Open floor plans: Connected living and dining areas are generally appealing to Millennial homebuyers, especially those who are looking for entertainment-friendly spaces.
  
  
• Outdoor living spaces: Patios and backyards, ideally with space for furniture or even outdoor kitchens, are also incredibly popular among the millennial homebuyer crowd.
  
  
• An opportunity to build wealth: Rather than looking for their “forever” home, many millennial homebuyers are shopping for starter homes that give them the chance to build equity and, eventually, level up to larger houses.

Understanding these homebuying trends and what’s behind them can help sellers figure out what updates to make before listing a house if they’re serious about attracting as many prospective buyers as possible.

In fact, since most home sellers these days are Boomers, according to the NAR, getting into the millennial homebuyer mindset can be a powerful way to position houses for more traction and faster sales.

6 Strategies & Tips to Help Millennial Homebuyers Purchase Their First Home

If you’re a millennial or first-time homebuyer and you’re in the market to buy a home in 2023 or after, here are some highly effective strategies for purchasing your first home:

1. Focus on building up savings as much as possible: Bigger savings can mean larger down payments and better chances for more favorable borrowing options. It can also put buyers in a position to cover closing costs or use that as a bargaining chip in negotiations, if needed. Plus, if homebuyers can save enough to put down 20% on a home, they can usually bypass the need for private mortgage insurance (PMI).
   
   
2. Try to pay down debt as much as possible: Don’t start running up credit card bills or opening up new lines of credit. Instead, work on paying off debt and improving your credit score as much as possible. Less debt and better credit scores can open up better mortgage loan options.
   
   
3. Shop around for mortgage loans: All lenders and mortgage loans are NOT the same. In fact, different lending institutions offer distinct borrowing options to buyers, and those can change with the markets. So, take some time to explore the mortgage loan options from at least a few different lenders. If you don’t, you could end up paying a whole lot more in interest (and other fees) than you need to.
   
   
4. Nail down your budget: Once you shop for mortgage loans, you’ll start getting a better idea of what you can afford and what lenders are willing to let you borrow. That can help you dial in your budget, so you can narrow your search, only focusing on options you can truly afford.
   
   
5. Don’t rush in: Take your time finding the right location and the right home to make an offer on. With the uncertainty in the economy and many folks bracing for a recession, millennial homebuyers who take their time and hold tight for the right opportunity can usually end up finding much better options to fit their needs and budget.
   
   
6. Work with a pro: An experienced Realtor® can walk you through every part of the home buying process, sharing valuable insights and priceless advice to help you make more informed choices at each juncture.

Ready to Buy or Sell a Home in Texas? Get Help & Get CASH BACK at Closing

Whenever you’re ready to buy or sell a home in Houston, Dallas, Austin, San Antonio, or anywhere in Texas, don’t navigate the process alone. Work with an experienced pro to avoid mistakes, streamline the process, and get the best price, regardless of whether you’re buying or selling a house.

The trusted Realtors® at New Home Gurus are ready to guide you through the process, helping you with offers, negotiations, and closing. Plus, we’ll split our commission with you when the sale closes.

Homebuyers and sellers who work with New Home Gurus can get back an average of $4,500 to $12,000 at closing.

How Much Cash Can You Get After Closing?

Call (281) 668-8124 or Contact Us to Find Out Now

We are standing by, ready to answer your questions and explain the details of our commission-sharing program.