Free Newsletter
Huge demand from home buyers paired with rapidly dwindling housing inventory has created a hot seller’s market in Colorado.
According to the Denver Association of Realtors’ monthly market trends report, the average home sale price in the Denver Metro Area increased by more than $90,000 year-over-year this February, while supply of available homes decreased by 58%.
Who are these new residents? Many of them are young adults in search of more space. In fact, millennials represented nearly 60% of the Denver area’s home buyers in 2020.
As more inventory becomes available and people continue to relocate to the Centennial State, it will be important to understand what motivates this new generation of home buyers and what they search for in a property.
In this article, we will cover some key things that millennials are looking for in a Colorado home.
Lots of Space
According to Clever Real Estate’s 2021 Millennial Home Buyer Report, young adults are looking for homes around 2,400 square feet — a 41% increase from before the pandemic, when they wanted homes that were around 1,700 square feet.
After a year of sheltering-in-place, millennials are looking for areas where they can comfortably grow with their families and enjoy their surroundings.
Therefore, it’s no surprise that many of these buyers have naturally gravitated toward Colorado’s picturesque mountain towns and outdoor lifestyle.
When asked about their most sought-after features in a property, Clever’s report revealed that millennials want homes with:
- Garage (61%)
- Large kitchen (60%)
- Basement (43%)
- Space to “grow into” with a family (43%)
- Open floor plan (41%)
- Walk-in master closet (39%)
A far cry from the minimalist rental apartments millennials have been known to inhabit, these buyers are now looking for full-size houses with plenty of room to work and play.
Surrounded by Nature
As an eco-conscious generation known for its obsession with house plants, millennials are now translating their love of nature into their house-buying decisions.
Clever’s millennial home buyer report revealed that 45% of respondents wanted a home with outdoor living space, and nearly 3 out of 10 said eco-friendly and energy efficient features (such as geothermal heating, solar panels, and sustainable materials) were among their top priorities.
Millennials also want to be close to outdoor activities. NAR’s 2020 Generational Trends Report revealed that a property’s proximity to parks was more important for buyers in their 30’s than any other age group.
Their pets’ recreational needs matter, too, with 30% of buyers ages 22-29 listing outdoor space for their furry friends as a main factor when choosing a neighborhood.
Remote Work Setup
Before the coronavirus, many people were tied to a certain place because of their job.
However, after nearly 90% of organizations worldwide were forced to close their office spaces in 2020, most businesses adopted work-from-home measures, allowing employees to work from virtually anywhere with WiFi.
This shift has completely changed where and how people work, and many people want to continue their new lifestyles even after they’ve received the vaccine.
A survey of 1,000 remote and in-office workers by Clever Real Estate revealed 63% of employees prefer working from home to the traditional office setting, and nearly 30% plan to continue working remotely after the pandemic.
This trend is mirrored in Clever’s millennial home buyer report as well, where 31% of respondents listed “dedicated office space” as one of their top needs in a new house.
Showcasing and properly staging areas in a home that could act as an office, a studio, or a creative alcove could help make a property stand out to these digital employees.
A Good Deal
Since becoming adults, millennials have faced various financial crises, mounting student loan debt they have to figure out to repay, and rising costs of living.
For many years, these have been barriers to homeownership for young adults. In fact, two-thirds still say that they are unable to afford the traditional 20% down payment on a house.
Record-low interest rates, however, have motivated many people to finally stop renting, and they’re looking for a good investment in the process by saving for a house.
Although the average U.S. home value is currently over $266,000, many millennials want a property that’s under $250,000, and they’re willing to buy properties in need of repairs to achieve their ideal price.
In Clever’s millennial home buyer report, more than 7 out of 10 of respondents said they would be willing to buy a fixer-upper. These young home buyers are willing to negotiate for the best deal possible, but they should also be aware of what truly goes into buying an outdated property.
A dream home can quickly turn into a money pit if more damage is revealed once renovations begin. Understanding the needs of young adults and first-time home buyers is imperative to staying ahead in Colorado’s busy residential market.
Working with a local real estate agent is a great way to understand a neighborhood’s specific trends, and what millennials in your area are specifically after.
Kristen Herhold is a writer for The Manifest and focuses on social media and digital marketing business trends. Connect with Kristen on LinkedIn or reach out with any questions to [email protected].