18 Things Millennial Buyers Want in a New Home for 2021

With the older millennials entering their forties, it shouldn’t come as a surprise that they’re now the driving force behind the recovery of Canada’s real estate market. Unlike their counterparts in the United States, they’re not completely crippled by student debt and many have amassed the savings necessary for the deposit on that dream home. With historically low mortgage rates, owning a home has become more realistic too. However, like millennials in the United States, those in Canada have a different way of buying homes – and are looking for different things in a new home – than older generations. Here are some of the things millennial buyers want in a new home for 2021.

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Detached Single-Family Home

Millennials are in on one of the biggest Canadian real estate market trends of 2021: they want detached single-family homes. This is a trend south of the border too, where the National Association of Realtors – or NAR – conducted a study of what different generations want in their homes now. The NAR report says that 88% of buyers between 31 and 40 wanted a detached single-family home, while it was also the preference of 81% of buyers between 22 and 30. What millennials don’t want are apartments or condos.

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Location in the Suburbs

More than half of millennials in the NAR study wanted a home in a suburb or subdivision. They’re also looking to buy in small towns and even rural areas. Only 15% of millennials over 31 and 16% of millennials under 30 were interested in buying downtown. The driving factors in choosing these locations included the quality of the neighbourhood, the affordability of the home, the school district, and convenient distances to their work, friends and family and amenities.

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Larger Homes

Millennials are now looking for larger homes than before the pandemic. According to Cleaver Real Estate’s 2021 Millennial Homebuyer Report, millennials now want a home of 2,400 square feet as opposed to the 1,700 square feet they wanted before the pandemic. The NAR says that most millennials want three bedrooms and two full bathrooms. Having enough space for a growing family in the future is an important factor: when buying a new home, they’re planning on keeping that home for at least sixteen years.

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Older Homes

While baby boomers are looking for new homes, millennials generally don’t mind older homes that are more affordable. According to the NAR, the median year in which homes should be built is 1979 for younger millennials and 1989 for older ones. About a fifth of millennial homebuyers were even buying homes built between 1916 and 1958.

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Fixer Uppers

Millennials don’t spend too much time asking if they should buy a new home or renovate: Clever Real Estate says that 71% of millennials are willing to buy a fixer upper. Even before the pandemic, when millennials were surveyed in 2019, 68% would buy a home that needs some TLC. Canada offers many different tax benefits, rebates and grants for renovating.

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Homes With Great Online Listings

Millennials are much more prone to buying a home without actually viewing it first. In fact, 29% would buy sight unseen, relying instead on photographs and virtual tours, according to Clever Real Estate. This means that if you want to sell your home, you need to make sure it has a great online presence: millennials also use social media to find their dream home.

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Seller Concessions

Clever Real Estate says that even when millennials weren’t saying outright that they’d buy a home sight unseen, one of the factors that could convince them to do so anyway was seller concessions. These include waiving inspection fees, covering the closing costs and repair credit: some of the hidden costs of buying a new home.

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Garages

According to Clever Real Estate, 61% of millennials want a garage in their new home. After all, a garage is more than just a space to park your car: it provides storage space too. You can even convert it into another bedroom or an entertaining space.

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Large Kitchens

Many millennials discovered the joys of cooking and baking during the pandemic, so another feature at the top of the list for 60% of millennial buyers, according to Clever Real Estate, is a large kitchen. This may help explain why, if you’re looking for the renovations with the renovations with the highest return on investment, you should start with the kitchen.

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Outdoor Living Space

Clever Real Estate says that 45% of millennials are looking for outdoor living space, which helps explain the trend towards detached homes in the suburbs. Millennials not only want to grow their own gardens but they also want to entertain or even work outdoors, so they love features like decks and patios.

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Lots of Natural Light

Millennials don’t want dark and gloomy. Clever Real Estate says that 44% of millennial homebuyers are looking for lots of natural light in a new home. This would include large windows or sliding doors and skylights that would keep things bright without driving up energy costs.

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Basements

Like garages, basements are versatile spaces that can easily go from a place where you store your stuff or do your laundry to a bedroom for a teenager or an apartment for aging parents as the family grows. A basement was a sought-after feature for 43% of millennials, according to Clever Real Estate.

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Open-Concept Designs

Clever Real Estate says that 41% of millennials are looking for an open-concept design. It creates greater flow and a sense of space and light in the home. It’s also more versatile.

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Walk-in Master Closets

After spending far too many years of their lives living with roommates and having to figure out ways to double closet space, 39% of millennials are looking for a walk-in master closet when they’re finally buying a home, according to Clever Real Estate.

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Dedicated Office Space

Even though millennials love the idea of open-concept living, having to work from home during lockdown has illustrated the value of a dedicated office space. Clever Real Estate says that this is something that 31% of millennial homebuyers are looking for in a home.

Person controlling a smart features in a home

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Eco-Friendly and Energy-Efficient Features

Clever Real Estate says that eco-friendly and energy-efficient features were among the must-haves for 27% of millennial buyers. According to the NAR, the biggest considerations for millennials in this regard were cutting down on commuting, heating and cooling costs; energy-efficient windows, doors and sidings; energy-efficient lighting and energy-efficient appliances.

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Pools or Hot Tubs

Millennials love entertaining, so it’s no surprise that 20% of them want a pool or hot-tub in their home, according to Clever Real Estate. Since most millennials are first-time buyers, they may not be able to afford Canadian cottages too, even if these are affordable. So, having a place right at home where they can soak while dinner’s on the grill is a good way to compromise.

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Guest Homes

Clever Real Estate says that 17% of millennials are looking for a home that comes with something like a guest home or separate suite. This makes multifamily living possible in the future and meanwhile, millennial homebuyers waiting for the next recession have a safety net in the form of potential rental income.