The millennials' preference - Tech-savvy and environmentally conscious
Category News
As a generation of environmentally conscious and tech-savvy individuals, millennials are displaying a stark contrast to the slacker stereotype and taking a more methodical approach to building wealth by buying luxury homes at a higher rate than any other generation preceding them.
With their oldest generational cohorts turning 40 this year, millennials are now representing a sizable share of young and middle-aged adults. Despite the unique set of challenges they face, millennials are no less inclined to purchase property than their parents, it's just that they're waiting longer to do so.
Shaping the future of the luxury home market
We like to think of traditional starter homes as affordable options to allow us to raise our families before spreading out and finding a larger property to expand and provide a better quality of life. However, this concept is less common among millennials as wealthier members of the generation are opting to buy luxury homes straight from the start.
Properties from Knysna to Cape Town and the Northern Suburbs of Johannesburg are becoming dominated by millennial buyers intent on investing in multi-million rand real estate. The reason behind this trend is partially explained by the unique employment situation we currently find ourselves in.
With the advent of remote working solutions accelerating to become the new norm, people are becoming less dependent on living closer to their offices. This break in one of the fundamental reasons why cities exist in the first place has placed millennials in a unique position to purchase high-end property in more affordable spaces.
Tech-savvy and environmental preferences
The new face of a luxury property is likely to include aspects like touchless and high-tech features that allow you to manage your home from a personal device or terminal. Some homes have automated cleaning services run by a scheduled system and allow you to answer the doorbell remotely by having the point of entry security system linked directly to your phone.
Homes that have sustainable credentials take preference among millennial buyers. From geothermal systems and solar panels, Homes that are both environmentally friendly are quickly becoming a premium amongst a saturated market of highly motivated buyers.
Despite current market trends showing a slight dip in luxury homes, the overall forecasts depict what looks to be a grand scale comeback with a survey counting 70% of respondents showing steady growth in interest at the end of 2020.
Changing trends within the real estate sphere
Millenials are characterised by higher attainment of education, higher earnings, and poised to inherit more wealth than any preceding generation. Millennials are a relative powerhouse in terms of market influencing factors and are expected to create brand new and dynamic methods in which homes are built, marketed, and sold.
This trend has been seen to quickly take its effect during the pandemic where massive shifts in cultural changes opened up new avenues in which to add value to one's property. Areas like Knysna and Plettenberg bay along the garden route or rural yet wealthy towns like Hilton in the KZN Midlands are quickly becoming prime locations because they offer a natural escape through walkable trails and nature which generally offers one a better quality of life.
Since proximity to work is no longer a deciding factor for this particular generation, a consideration for lifestyle over the demands of functionality has breathed life into the second tier luxury home market and propelled them to top listing spots.
With interest rates sitting at an all-time low, wealth creation on the rise and the cost of capital starting on the decline, it's no surprise that a promising storm of younger interest is likely to head up the high-end property market.
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Author: Lisa