April 2018

Attracting millennial buyers: the “smart” factor

It's no surprise that millennials — who grew up with smartphones, laptops and tablets — are attracted to technology.

We're already noticing the impact of this hyper-connected demographic on house hunting habits: For 99% of buyers 36 years old and younger, the most-used sources of home buying information were online websites, while 56% of this age group also found the home they eventually purchased through the internet.1

It's also becoming clear that millennials are a driving force behind emerging smart home technology. While it's still a relatively new industry, it's interesting to note that renters who have smart home products installed are three times as likely to be millennials.1

That means when millennials finally decide they want to purchase a home of their own, they will probably want that home to be smart too.

MILLENNIALS AND SMART HOME TECHNOLOGY

41%

of millennials are interested in smart home products

33%

of recent homebuyers are investing in home automation installation

28%

of homeowners think it's important to consider smart tech when renovating

23%

of millennials have already installed smart home devices in their home

 

Chart sources: "One quarter of millennials have begun building smart homes and four-in-ten want one, according to the NPD Group," Connected-intelligence.com;
"2017 U.S. Houzz & Home Renovation Trends Study," Houzz.com

 

 

These percentages may seem low, but they're only likely to increase over the next few years. Millennials are the first generation with the opportunity for a connected home, and early signs suggest they are already embracing the possibilities.

Your clients may be able to stay ahead of the curve by learning how smart home technology could improve their home's desirability. For one thing, smart appliances and thermostats add energy efficiency. Smart security and locking systems can give homeowners greater peace of mind by allowing them to stay connected with their home while they're away. Smart lighting can help boost safety as well as convenience.

It's unclear how smart devices may affect the selling price of a home. But given the growing impact of millennials as they enter the housing market, your selling clients may want to consider integrating at least some form of smart home technology.

The great news is that many types of installations can be as simple as buying the device and downloading an appropriate app on a smartphone. Your clients may want to check out this list for ideas.

 

Source:

1"Home Buyer and Seller Generational Trends Report 2017," NAR.realtor

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