Millennials now lead home buying, prioritizing wellness, energy efficiency, and personalized spaces. With their market power and cultural influence, understanding what they want is essential for builders and renovators. Explore their top preferences and trends in this insightful article. Make sure your home has the benefits of good indoor air quality, check out Panasonic ventilation products to see what's best for your living space.
They’ve moved out of their parents’ basements, overcome late night comedian barbs, defied expectations of a share economy mentality, and become the largest share of home buyers at 38% and 21% for younger and older Millennials. Those numbers come from the National Association of Realtors’ latest Home Buyers and Sellers Generational Trends Report. The 2024 results were generated from a study published in the trade group’s University Center for Real Estate Studies, which characterized younger Millennials as 25 to 33 and older Millennials as 34 to 43.
What are they prioritizing? What are they upgrading? What are they avoiding? Given their market power and cultural trend cache, what Millennials want is worth exploring. I reached out to a range of experts across the country to find out what they’re seeing in their categories and markets.
Chief marketing officer Stephanie McCarty with top 20 national homebuilder Taylor Morrison observes that 51% of their Millennial buyers over the past two years reported that they work from home the entire week, “Making it more important than ever that there are practical spaces throughout the home that can serve as workplaces.” She also notes that they’re similar to older and younger buyers in wanting to maximize their space. “Millennials are interested in ‘more function per foot’ and want every space to serve a purpose,” she adds.
Millennials have growing families and evolving needs, so they need homes and neighborhoods that support what he calls “Community and Convenience,” shares Scott Shuffield, vice president with Berkshire Hathaway HomeServices EWM Realty and a Millennial himself. “With remote work on the rise, having dedicated home office space is a priority for them.”
Charleston, South Carolina agent Savannah Walker with Maison Real Estate is a Millennial herself, as are more than half of her buyers. Must haves for them include a home office, she reports. “In many cases I am seeing families select new construction for the following reasons: importance of a modern floor plan with a playroom or loft for children’s toys and space for parents to work from home,” she adds.
Mary Peters, Boise-based design, remodel and general construction firm owner, says her Millennial clients are focused on kid-friendly home improvements. “As a result, most-requested project types focus on open floor plans, multifunctional spaces, outdoor living areas, and smart home integrations; the open space allows them to be able to see their kids and entertain.”
Walker also shares that, “For the most part, millennials are more willing to give up a perfect location in exchange for a home that provides adequate space and fits their budget.”
In his Miami market, the opposite is true, Shuffield says. “When it comes to compromise, Millennials are most willing to give up space to be in the location they desire.” They’re also willing to give up amenities like pools and an extra bathroom if it means getting the neighborhood they seek. That could be more a factor of geography and pricing than mindset.
McCarty observes that “31% of Taylor Morrison’s Millennial buyers over the past two years reported that they wanted a larger home, lot and garage” and their buying decisions are inspired by renting fatigue and a desire for more living space.
“Safety and security are always the top priority for Millennials,” Shuffield comments. “After safety, they prioritize wellness, seeking homes in neighborhoods with good schools, parks, and walkable amenities.”
Walker agrees: “I have worked with both single adults and young families – and in both cases, safety is a high priority.” She also notes that peace of mind with home warranties that cover a home’s major systems leads many Millennials to choose new construction homes.
Shuffield also sees buyers wanting turnkey solutions: “They’re looking for properties that are move-in ready, so having minimal need for major updates or repairs is key. On the flip side, homes with deferred maintenance issues like outdated plumbing, roof problems, or anything requiring extensive repairs are quick turn-offs.”
This preference shows up outdoors too, as Phoenix area landscape designer Tom Smith observes: “Most of the time they are looking for low maintenance. They do not want to be the people mowing the grass on the weekends or cutting the plants. They want to spend time doing other things. Turf is popular here and that is mostly centered around saving water. The only issue with turf is that it costs a lot upfront, so it is hard for many millennials to afford it. You don't really see the savings until years later."
Briana Gershenzon, design chief at national home improvement firm Renovation Sells, says that while Millennials are buying homes that have been well-cared for and prefer a turnkey approach that suits their busy lives, their new acquisitions rarely align with their personal style. “They’re drawn to decor that tells a story or starts a conversation, creating homes that are practical yet distinctly their own. For Millennials, it’s all about making the space an extension of themselves.”
She adds, ““Luxury for its own sake isn’t a priority; instead, they’re choosing high-quality, durable finishes that fit their aesthetic and lifestyle. They’re more selective about splurging, often prioritizing one key area, like a kitchen refresh, and balancing it with cost-saving measures elsewhere.”
Enhancing resale value is a key priority for New York area architect Dana Koenitzer’s clients. “Kitchen, mudroom, laundry, and bath renovations, additions, and projects that maximize resale value of their current property” are their top priorities.
“Sustainability also plays a role, with eco-friendly features like solar panels and electric car chargers gaining popularity – though these aren’t dealbreakers if other needs are met,” Shuffield clarifies.
Peters also sees sustainability and wellness as Millennial priorities. “They often prefer eco-friendly materials, natural elements (such as wool carpet and recycled hard surface flooring), energy-efficient solutions like tankless hot water heaters. Millennials like designs that promote a healthy lifestyle such as work out and meditation rooms, and projects that incorporate green technology – like solar panels or sustainable landscaping or xeriscaping – are highly favored.”
“I believe that wellness trumps sustainability as they do place a higher overall value in direct benefits to themselves and families over the indirect benefits of choices that are better for the world community,” theorizes Ryan Paddock, an Atlanta-based residential technology integrator. “We are most often asked about wellness optimizations for lighting (circadian), air quality, water quality, acoustics and thermal comfort. From a sustainability perspective, we are often asked to look at power management solutions, intelligent breaker systems, large format battery, and solar integration.”
“Millennials don’t typically ask for sustainable features, they assume it will be part of the design,” shares Koenitzer.
“Given what Millennials have seen during their adult life (from 2000 to present), they are more conscious of every part of the purchasing process and the decision making that leads to it. There has been an influx of uncertainty during their lifetime and as slated to be first generation to not exceed their parents in job status or income in American history, their focus is on how to get the greatest return on their investment for quality of living. Most place a high value on wellness and as such we expect to see that category grow for years to come,” Paddock predicts. He may be right!
Note: All sources were interviewed by email between October 24 and October 28.
This article was written by Jamie Gold from Forbes and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.