Millennials Seek Smaller, More Energy-Efficient Homes
As Millennials begin to enter the home buying market in larger numbers, homes will get a little smaller, laundry rooms will be essential, and home technology will become increasingly prevalent, according to panelists at an International Builders’ Show press conference discussing home trends and Millennials’ home preferences. NAHB Assistant Vice President of Research Rose Quint predicted that the growing numbers of first-time buyers will drive down home sizes in 2015. Some 3 million new jobs were created in 2014, 700,000 more than the previous year “and the most since 1999,” Quint said. At the same time, regulators have reduced down payment requirements for first-time buyers from 5% to 3%, and home prices have seen only moderate growth.
“All these events lead me to believe that more people will come into the market, and as younger, first-time buyers, they will demand smaller, more affordable homes,” Quint said. “Builders will build whatever demand calls out for.”