A survey asserts that Millennials are a different group of home buyers, with different “attitudes, preferences, and behaviors”.
65 percent of Millennials surveyed claim to live in the moment. I’ll add that, for a significant number of those 65 percent, the moment has to be exceptional.
What does this mean for Silicon Valley real estate? The house must offer, or have the potential to offer, an exceptional experience: the latest and greatest finishes, a great neighborhood, great schools.
Is this just a need for immediate gratification? I don’t think so. Millennials have delayed hitting the traditional milestones of life. By the time they decide to buy, their tastes aren’t necessarily those of the typical first-time buyer of five or ten years ago, happy just to become a Silicon Valley home owner even if it meant buying a small, dated house in a less-than-premium neighborhood. Now, expectations are higher: today’s “starter” home is yesterday’s “move-up” home.
Or it may simply be that at today’s spectacular home prices, many Millennials expect a commensurately spectacular experience, even if they’re shopping at an entry-level price point. But, alas, entry level is never spectacular.
Whatever the reason, the idea of humble starter housing may be on its way to becoming a quaint anachronism in Silicon Valley. Except for the flippers and builders, who turn it into move-up housing.
copyright © John Fyten 2016