How Millennials are changing the housing and real estate market More and more Millennials are looking to purchase a home, and Millennials now represent 32 percent of homebuyers, which is the largest portion of homebuyers in the market. According to Austin Hale, a Millennial product manager for a real estate investment software company “Millennials present an entirely new dynamic in the real estate market. They’re much more likely to rent, to congregate in urban areas, and to be cautious when taking on debt.” The purchasing habits and lifestyle changes of Millennials are altering the real estate market. The following are ways that Millennials are altering the way that the housing and real estate market operate. Millennials have a preference for renting Although Millennials make up the highest percentage of homebuyers, the majority of them prefer to rent. They favor renting for multiple reasons, one of these being that Millennials wish to have the option of being able to pick up and go when they want. They prefer the freedom with less commitment which is what renting provides. Also, it has been noted that 10 percent of Millennials don’t feel ready to manage a property. Instead, they want a landlord to take care of maintenance and other issues that may arise. Millennials are known for wanting as little commitment as possible therefore they are more likely to buy entry real estate such as condos so that they have the option to rent it out if they move away. Millennials explore for themselves Millennials are not seeking a broker to help them find a home instead they are finding homes on their own. Nearly 50 percent of Millennials found homes online through the internet and, 31 percent found homes through an agent. Almost, all Millennials will seek a real estate agent or broker when they finally decide to purchase a home, and they prioritize those with websites, images, interactive maps, and reviews. Millennials prefer small spaces Instead of looking for extravagant large homes, Millennials are seeking smaller more efficient spaces. Many Millennials prefer minimalist living, fewer personal items, and household objects. It provides them with the flexibility and financial stability they desire. They also value energy efficient appliances to help keep their bills and their carbon footprint as low as possible. Small spaces allow Millennials to see their home as a temporary base and not necessarily somewhere they will reside for an extended period. Millennials do not hunt for real estate agents Most Millennials will not shop or even hunt for a real estate agent. Instead, they will seek recommendations from friends or relatives. On average, 72 percent of millennial homebuyers will only contact one agent, and many won’t follow through with an agent at all.