The New Market Influencers
Millennials, according to Goldman Sachs, are seeking something previous generations might not have prioritized. The bulk of today’s new homeowners don’t just seek curb appeal. They have developed an eye for what supports their long-term health and the health of the planet. These are key areas where millennials and younger buyers are comfortable spending their money.
Homes that integrate sustainability and wellness are all the more attractive because of their scarcity. This point isn’t lost on home designers, real estate agents, and a growing number of sellers. Let’s see what’s happening for 2022 and beyond.
New Generations of Buyers Take Wellness to Heart.
More than 92 million people in the United States are children of the 80s and 90s. They’ve entered the real estate market later than previous generations, but they’re buying today.
This new generation of buyers stands out for its interest in holistic health practices: think mindfulness, yoga or tai chi, and meditation. They’re synched into exercise apps and healthful eating.
What do they look for in a potential new home? Healthy interior and exterior features attract them. Solar roofs, indoor fitness spaces and outdoor relaxation areas, natural lighting, spa-influenced bathrooms — all these things appeal to the new generation of home buyers.
Health and safety technology is also a draw. Think remote-controlled security, lighting, updated HVAC systems, and leak detectors. Smart-home electronics can conserve electricity and water, both inside and out. Connected devices can even monitor air and water quality. Newer appliances are designed to save energy and cut down water use.
Safe, natural materials and good weather sealing also make a difference to younger buyers. Comfort matters, as the home may now serve as a gym, a learning base, an office location, and reception space.
Outdoor Space Matters More Than Ever Before.
Organic growing, native gardens, wildlife gardens, cooking with home-grown vegetables and herbs, composting… All these ideas fit in with wellness and sustainability. And they are highly prized in 2022.
Sensitive to the demand, today’s builders are including more outdoor dining spaces and fewer front yards. Concrete is out; biodiversity is in. Natural or recycled outdoor materials are also desirable. Patios and balconies catch the home buyer’s eye: these areas aren’t just extra space. They’re gardens!
Gardening, to the younger generations of homeowners, is more than an occasional pursuit. It’s an integral part of life, and a way to appreciate whatever outdoor space comes with the home. During the pandemic, many young people browsed social media sites to understand local plants, and to learn about gardening tools and supplies. And they’re eager to deploy their new knowledge.
An understanding of the troubles connected with invasive species, too, is growing in 2022. Indeed, invasive plants are such an issue that some towns are investing in systematic removal initiatives. Homeowners are showing an increasing interest in buying and planting locally appropriate plants, and once the native garden takes root, it gradually erases the need for watering, fertilizing, and heavy yard maintenance.
Water Has Become an Issue—Whether It’s Not Enough, or Too Much at Once.
Landscaping to conserve and absorb water is critical today. With droughts, water shortages, and heat extremes in the west, and floods in the eastern part of the country, xeriscaping is becoming an increasingly influential technique. This is a mode of planning for beautiful outdoor space without the need for watering the soil. It’s already dominant in the southwestern region, and we can expect it to gain ground, so to speak, more broadly in 2022 and beyond.
Storm water planning is important everywhere. Buyers are looking for natural approaches to mitigate flooding and reduce the amount of impermeable surfaces such as concrete.
☛ Whether a catastrophe is natural, human-driven, or some mix of the two — as with storm surges and flooding — it can lead to mortgage defaults. Read more from Deeds.com about how home buyers can protect the value of their titles from costly disasters.
Rain gardens and native flowering shrubs and trees can absorb water effectively and beautifully. They can also thrive without the use of chemical pesticides and fertilizers.
All of this is influencing design and changing the way homeowners think about their outdoor spaces, especially if they plan to sell at some point.
Nearby Open Space, Cycle Paths, and Walking Trails Draw Millennials and Younger Buyers.
Well-being, for many young homeowners, means a daily commitment to getting outside and enjoying the sun and fresh air. The pandemic deepened this need. A prolonged stay-at-home economy impacted millions of people. Their at-home experiences led to shifts in habits and priorities.
When office life was placed on hold, homes became multi-taskers. Today’s emphasis on remote or hybrid working has embedded new expectations into the home buyer’s journey.
What does this mean in practical terms? According to industry surveys, today’s buyers are keen to live near trails, outdoor exercise areas, bike paths, and walkable downtowns.
The Covid years have taken their toll on everyone. Home buyers are feeling the need to de-stress. The trail or woody park can offer a refuge, just as a garden patch can.
☛ Interested in more health and environmental trends impacting real estate today? Check out our coverage of EHomes, smart Houses, and even solar housing communities to learn more about what’s going on!
The Takeaway for Home Sellers? Integrate Wellness Features.
What does all of the above mean for the person who is selling a home or homes? If you’ve got wellness features in the home or the surroundings — a nearby gym, access to a walkable shopping areas, indoor air and water filters, native garden spaces — flaunt them.
Flexible floorplans and interior gardening touches, too, are selling points today. These features all support millennials’ hope to live sustainably, and staying productive outside of the traditional office setting.
Sellers might consider hiring a professional home inspector before having their homes listed. After all, buyers will need to set up inspections. And no matter how well the home has been maintained, a professional examination may pinpoint drainage issues, or recommend health and safety fixes such as HVAC filters or duct cleaning.
Important note: The homeowner’s title insurance does not cover any need to remediate mold, water damage, radon, or any other issue with the home’s physical condition. Your real estate agent can suggest licensed professionals in the local area, and provide the form that explains the state’s disclosure laws.
The millennial generation is larger than any previous cohort of home buyers in U.S. history. As this group and the generations to follow dominate the market, their impact on home design is nothing to sneeze at — pun intended!
Supporting References
Goldman Sachs Global Investment Research: Millennials Coming of Age.
Jamie Gold for Forbes: What Millennials’ Wellness Focus Means For The Housing Market (Jul .27, 2021).
Aashna Living, for Markets Insider / PR Newswire / Cision Distribution: The Emerging Wellness Culture is Reframing the Future of Real Estate, Today! (Mar. 4, 2022).
GIE Media, Inc., Garden Center Magazine: Features, Trends – Consumer Confidence (Mar. 2022; citing 2022 gardening survey report from Axiom.com).
Nursery Management Magazine via NurseryMag.com: Cover Story – Consumer Confidence 2022 (Dec. 7, 2021).
And as linked.
Photo credits: Miriam Alonso and Yan Krukov, via Pexels.