Millennials at the Crossroads of Buy vs Rent
For high-end, luxury developers and real estate marketers alike, understanding your target consumer is a key consideration that impacts everything from the name of the development to the customer journey.
BY GAVIN MANLEY
As the largest generation in the US today, much has been written about Millennial consumers and their unique attitudes and behaviors—specifically as it relates to wealth and financial stability. And yet, knowing who Millennials are is just the first step. Identifying the specific nuances of segments within the cohort and the trends that are driving their behavior is equally critical to success.
Photo Credit: Austin Distel
Here are a few quick insights about millennials and homeownership:
Many Millennials (those individuals aged 24-39) are at critical crossroads as they ponder the dilemma of buying a home or renting indefinitely.
According to Apartment List's 2021 Millennial Homeownership Report, while home purchases by Millennials spiked over the last decade, they still lag behind every other preceding generation.
A growing number of Millennials expect to forgo buying a home altogether, preferring instead to rent long-term. Deep-rooted economic insecurity and the impact of the 2020 pandemic have, of course contributed to this emerging trend.
For Millennials with the means and motivation to realize their homeownership ambitions, many are moving out of major cities and into the local exurbs for either their primary or secondary home (according to the Coldwell Banker 2021 Global Luxury Market Insights).
Dubbed “Explorers” by Coldwell Banker, those in this consumer segment are typically married with at least one child and have an estimated net worth in the $1–$5 million range. Moreover, “many are business owners, business executives, or work in professions that allow them the flexibility to work from home, making it easier for them to live farther away from major metro centers,” the report states.
Information like this intrigues and motivates our team. As discerning Millennials continue to define themselves through their experiences and choices, we will continue to learn about them and work to capture their interest. After all, data-driven digital strategies brought to life through compelling creative content are at the heart of everything we do at Knightsbridge Park.
Every day, we help luxury developers and property owners dimensionalize their target audiences and create digital advertising programs that are designed to engage and inspire.
Originally published on Knightsbridge Park’s blog.