The past decade has seen major shifts in the way people live, from renting permanently to living with roommates longer than anticipated or wished, to delaying homebuying or not even considering it. Many people think homeownership is down, but that’s not necessarily the case.
It appears that millennial and Gen Z renters and buyers simply expect more from the real estate they consider. So, what must real estate builders and brokers do in order to meet their differing and expanding home needs? Below, 13 members of Forbes Real Estate Council tackle that very question.
1. Offer Luxury Amenities In Rentals
Developers who want to capture younger generations with different priorities other than homeownership are increasingly focusing on creating rentals with luxury condo-style shared amenities: indoor pools, golf simulators, high-end gyms, yoga rooms and pet spas. Competition is only growing for flexible lifestyles without sacrificing lavish services.
– Elizabeth Ann Stribling-Kivlan, Stribling & Associates
2. Ascertain The Demographic Course
One of the keys is to look at your land use and planning projections. These are a guide you can utilize to see what a community has put in place for the growth elasticity. When you have this information, look around for properties that meet your desired market segment and temperament.
– Michael J. Polk, Polk Properties
3. Differentiate Yourself As A Developer
In order for developers to meet the needs of today’s homebuyers, they must find a way to differentiate themselves while providing amenities and services that meet the needs of today’s buyer. One example, as organic food and farm-to-table become more prevalent, so is providing an agricultural-themed community with grow boxes to allow residents to grow and maintain their own fruits and vegetables.
– Michael Govern, Centerline Capital Advisors LLC
4. Go Beyond Buyer Expectations
While you want to offer a property that is high-quality, you don’t want to be too polarizing. Being too extreme can be tumultuous. The property needs to speak to buyers, so rather than trying to mold the buyer, brokers should concentrate on the property and its intrinsic values. Brokerages need to employ skill sets that vary from data analytic and marketing intelligence to project management.
– Cody Vichinsky, Bespoke Real Estate
5. Always Listen
The key to real estate success remains the same: listen to the consumer. Yes, consumer housing needs are changing. Record housing prices in coastal markets is driving much of that change. But let’s stop thinking we know what the consumer wants and ask them. By continuously asking the right questions, builders and brokers can adapt to better serve all housing needs. Feedback wins.
– Kevin Hawkins, WAV Group, Inc.
6. Focus On Smaller Homes
We may see trends starting to shift back to smaller footprints, lower prices and smaller carbon footprints as millennial and Gen Z buyers hit the market for homes. As focus on a healthier, happier and simpler lifestyle starts to rise, homes within walking and biking distance from workplaces, garden areas and communal gathering features will become more of a demand, not optional.
– Coni Dean, Venture Realty & Investments
7. Think Creatively
Times are changing and people’s needs change. For the most part, the large home with the double garage and yard are gone. The new families of the day are thinking how they can Airbnb part of their house out or put a side suite in for extra income. Real estate agents need to think creatively and be able to think of solutions like a renovation specialist as most homes are not set up to rent out like a hotel.
– Chris Ryan, BEYOND Properties Group
8. Offer A Dedicated Service For Renters
Getting a rental can be very challenging in competitive rental markets. Despite this problem faced by renters, most brokers and agents do not offer a service for this. Busy, well-paid professionals will pay for services that save them time and solve a painful problem. Agents and brokers can stand out by serving these coveted clients.
– Dave Zirnhelt, Snap Up Real Estate
9. Build And Operate With Community In Mind
Real estate developers and owners must build and operate with the goal of creating a strong sense of community for residents. With millennials and Gen Z renting longer, finding ways to strengthen belonging within your building and connections with the surrounding neighborhood are critical as they can inspire meaning in everyday life, create brand loyalty and instill a sense of home.
– Benjamin Pleat, Doorbell Communities
10. Create Efficient Plans
Recent trends have shown an urbanization of young homebuyers wanting to live closer to work. Central areas have become extremely expensive due to the demand. The market is in need of minimalistic floor plans that offer a younger demographic something affordable that could allow them to enter homeownership and begin building equity sooner.
– Justin A Core, Core Group Real Estate, LLC.
11. Provide A Unique Homebuying Experience
With a massive shift in the way people live, builders and brokers will have to use technology and education to provide today’s buyers with an experience that caters to their unique individual needs. Builders will have to find a way to get away from the cookie-cutter neighborhood where all homes look the same and create more options to create more custom homes.
– Collin McDowell, Greg Garrett Realty.com
12. Be Agile And Adaptive
The way people are living has seen a major shift, which requires builders, developers and brokers to be agile and adaptive to the new trend of co-habitable space, in addition to buyers looking to supplement their mortgage with short-term rental space. In urban areas builders and developers have to use every square inch of the lot’s impervious coverage.
– Justin Pistorius, Local Life Realty
13. Focus On Double-Family Residences
With more buyers looking for ways to turn their homes into income streams, brokers need to wise up on the zoning and regulatory environment. Whether it is the permitting process for converted garages, building laneway housing on site or the shifting laws around short-term rentals, brokers need to already know the answers to these increasingly common questions that buyers ask.
– Ari Afshar, Compass
Source: Forbes