Millennial Buyers: What Are They Looking for in a Home?

Millennials, also known as Gen Y, are typically split into two age groups. Younger millennials are between 25 and 33, and older millennials are aged 34 to 43. While it’s likely that a 25-year-old will have a different budget and preferences than a 43-year-old, there are many similarities in what they want in a home. 

For instance, a house with flexible space allows younger Gen Y’s to entertain friends for now, but they can turn that entertainment area into a playroom when it’s time for kids. Also, as the first generation to grow up with the Internet, most millennials are tech-savvy. They want a strong Wi-Fi connection, love smart features, and don’t need a landline.  

While it may seem like millennials are picky or particular because of their long list of wants in a home, it’s likely because they’ve had to wait to get the most bang for their buck. In 2024, 75 percent of younger millennial buyers bought their first home, and 44 percent of older millennial buyers made their first home purchase. These buyers are money-conscious, burdened with student loan debt and the rising cost of living. For them, a home purchase needs to be worth the investment.

While it doesn’t make sense to spend a lot to get your home ready to sell, it is wise to try to offer what your target buyers want in order to get a top-dollar offer.

Millennials comprise the majority of remote workers, with 36.5% of those who work from home aged 25 to 39 years old. Not surprisingly, buyers at this age want a separate space where they can work without interruptions, even if it’s on a hybrid schedule. 

If your home doesn’t have a designated home office, consider putting a desk in the extra bedroom or dining room prior to listing your home. Even if there are no extra rooms to dedicate as a workspace, staging the living room with a small desk in a quiet corner will show buyers that there is potential for working remotely. 

While getting takeout is a big part of Gen Y’s lifestyle, they still think of the kitchen as the heart of the home. They love to entertain, with friends or family members gathered around, sharing snacks on a big kitchen counter or island. Updates like new cabinets and countertops, a modern backsplash, and newer appliances are also highly attractive to millennial buyers, as they don’t want to have to make the updates themselves.

If your kitchen doesn’t have a gathering area, it makes sense to stage it like it does. Purchase a few bar stools and place them at the counter, or rent a counter-height table with plenty of seating around it. If there’s room, a portable island can be brought in so buyers can picture the extra snacking or prepping space. And while major kitchen updates can be expensive, the investment might be worth it if your home is extremely outdated. At the least, paint the cabinets and put in a new backsplash for a more up-to-date look. 

Selling to millennials means meeting their desire for health and wellness, and according to the National Association of Home Builders, 61% of millennials want a place where they can exercise at home. Whether it’s a treadmill in the bedroom, a home gym in the basement, or a designated workout space in the garage, they don’t want to leave home to get fit. 

It’s not necessary to buy a bunch of gym equipment to sell your house. But if you have a few dumbbells or an exercise ball, use them to stage an area in the basement or extra bedroom to show off a potential fitness space.

With millennials making up the largest percentage of pet owners (33%), they want a safe outdoor area for their furry friends to roam. Many people in this age group also have young kids and love the idea of having a private space where they can spend family time outside or barbecue with friends.  

Because the majority of millennials will pay 10% more for a home that has a great backyard, make sure to spruce up your outdoor space before selling. Putting up a fence might not make financial sense, but you should definitely fix any broken pieces if you already have one. And while pouring a new patio can cost around $10,000, you can have sunken concrete slabs leveled for less than half of that. Add a nice outdoor rug and patio furniture, string some lights, and add potted plants to create a beautiful extended living space.

Millennials are busy, whether they are young singles who love to travel or busy parents raising sports kids. Since they don’t have a lot of time to prune flowers and pluck weeds every weekend, they prefer plants that take care of themselves like boxwoods, hostas, and daylilies. 

Curb appeal is very important when selling to millennials, but the landscaping needs to look easy to maintain. Consider pulling out roses and hydrangeas and replacing them with maintenance-free shrubs, ornamental grasses, and hardy flowers.   

As a tech-savvy generation, what millennials want in a home are smart gadgets like thermostats, security systems, garage doors, lights, and window coverings that can all be controlled from a phone or with voice commands. 

To transform your home affordably, swap out your old analog thermostat for a Nest, which is only about $130. Buy a few smart light bulbs for the main rooms of the house, starting at $10 each. And to impress potential buyers before they even enter your front door, install a smart lock keypad which only costs around $75. 

Many Gen-Y buyers are still paying off college loans or credit card debt. They want to know that buying a home won’t leave them with astronomical utility bills at the peak of summer and winter, and they appreciate energy-efficient appliances that will keep costs down.

While it doesn’t make financial sense to put solar panels or even a new roof on your home before selling, you can still impress millennial buyers by replacing old HVAC systems, or at least offering a credit towards a new furnace or AC. And if your appliances are old, consider buying a refrigerator, stove, or water heater with the Energy Star name.

Buying a home in today’s market is a huge investment, and millennial buyers want to know their money won’t be going down the drain. Home warranties ensure that if an appliance breaks or a major system such as plumbing, HVAC, or electrical goes kaput, the issue will be repaired or replaced. 

If your home’s appliances are still under a manufacturer’s warranty, make sure your agent lets potential buyers know. And if you want to offer peace of mind for millennials looking at your home, you might offer to throw in the cost of a home warranty for six months or a year so they know they won’t be stuck with a money pit after closing.

As agents in the St. Louis area for over a decade, we have been through the process of buying and selling to every generation. If you’d like assistance with your home sale, contact us today and we would love to help.