New homes have become more popular in recent years. Knowing why they’re growing in popularity is important to your overall strategy for success. And much of this knowledge starts with knowing your audience. Here are a few reasons why new homes are popular and how to capitalize on it, with help from 2-10 Home Buyers Warranty (2-10).
Millennials Love New Homes
Millennials are the biggest share of the home-buying market. Even with the various challenges they face (e.g., affordability, student loan debt), millennials are indeed buying homes, albeit a bit later in their lives than past generations.
Accommodating this group of new-home buyers isn’t a gigantic mystery, either. Here are a couple things millennial home buyers look for, along with ways to capitalize on them.
A Sense of “Mine-ness”
A huge differentiator among new homes for millennials is a sense of “mine-ness.” In other words, no one has ever lived in it, they have more say in how it looks and flows, and there’s more peace of mind that comes from the very fact that it’s new.
That last part is especially important to builders like you. One of the leading causes of buyer’s remorse is the cost of unexpected breakdowns. Even though it’s possible for newer home items to break down, homeowners perceive it as less likely to happen to newer items. This gives your millennial buyers a larger sense of ownership, which is increasingly important.
Asking for a Friend
You likely know how important third-party validation is to your success.
Third-party validation is especially true among millennial buyers, since “83% of those who had already purchased a new-build home said they would recommend it to their friends.”
So, it’s safe to say that for the millennial crowd, you aren’t just selling to one client at a time—you’re also selling to a large swath of their friends.
This means it’s smart to give them what they’re looking for as much as possible.
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Build to Rent Is Exploding
On the other side of the coin are millennials who can’t afford to buy but want some semblance of the experience of home ownership. Though the assumption has long been that millennials want city life, that’s simply not true. So, how can you provide an experience of home ownership to those who can’t afford it?
Enter build to rent (BTR). The BTR market is booming, especially among younger home buyers. In the coming years, you may find that BTR is a comfortable medium between outright home ownership and renting an apartment. This means that you’ll likely need to cater not only to the folks living in BTR communities but also the investors looking to purchase and rent them out.
Navigating the BTR Market
BTR homes will obviously need to appeal to millennial and Gen Z home buyers. But they’ll also need to appeal to the people investing in them.
One of the best ways to appeal to both crowds is to provide much-needed peace of mind. And nobody can provide that better than 2-10 in the BTR space.
With 2-10, you can continue to protect your profits, promote your quality, and plan for the future by controlling what’s behind you. You can also provide the peace of mind that investors and renters need in a challenging market.
Learn more about how you can take advantage of 2-10’s expertise in the BTR market.