Millennials Seek Smaller Houses, But Won’t Sacrifice Details

As Millennials begin to enter the home buying market in larger numbers, homes will get a little smaller.

Palm Coast, FL – January 27, 2015 – As Millennials begin to enter the home buying market in larger numbers, homes will get a little smaller, laundry rooms will be essential, and home technology will become increasingly prevalent, said panelists during an International Builders’ Show press conference on home trends and Millennials’ home preferences held last week.

NAHB Assistant Vice President of Research Rose Quint predicted that the growing numbers of first-time buyers will drive down home size in 2015. Three million new jobs were created in 2014, 700,000 more than the previous year “and the most since 1999,” Quint said. At the same time, regulators have reduced downpayment requirements for first-time buyers from 5 percent to 3 percent and home prices have seen only moderate growth.

“All these events lead me to believe that more people will come into the market, and as younger, first-time buyers, they will demand smaller, more affordable homes,” Quint said. “Builders will build whatever demand calls out for.”

Quint also unveiled the results of two surveys: one asking home builders what features they are most likely to include in a typical new home this year, and one asking Millennials what features are most likely to affect their home buying decisions.

Of the Top 10 features mentioned by home builders, four have to do with energy efficiency: Low-E windows, Energy Star-rated appliances and windows and programmable thermostats. The top features: a master bedroom walk-in closet and a separate laundry room.

Least likely features include high-end outdoor kitchens with plumbing and appliances and two-story foyers and family rooms. “Consumers don’t like them anymore, so builders aren’t going to build them,” Quint said.

When NAHB asked Millennials what features fill their “most-wanted” shopping list, a separate laundry room clearly topped the list, with 55 percent responding that they just wouldn’t buy a new home that didn’t have one. Storage is also important, with linen closets, a walk-in pantry and garage storage making the Top 10 – along with Energy Star certifications. In fact, this group is willing to pay 2-3 percent more for energy efficiency as long as they can see a return on their power bills.

If they can’t quite afford that first home, respondents said they’d be happy to sacrifice extra finished space or drive a little farther to work, shops and schools, but are unwilling to compromise with less expensive materials.

A whopping 75 percent of this generation wants to live in single-family homes, and 66 percent of them prefer to live in the suburbs. Only 10 percent say they want to stay in the central city. Compared to older generations, millennials are more likely to want to live downtown, but it’s still a small minority share, Quint said.

Panelist Jill Waage, editorial director for home content at Better Homes and Gardens, discussed Millennials’ emphasis on the importance of outdoor living and that generation’s seamless use of technology, and how those two trends play into their home buying and home renovation decisions.

Because they generally don’t have as much ready cash – or free time – as older home owners, Millennials seek less expensive, low-maintenance choices like a brightly painted front door, strings of garden lights, and landscaping that needs less watering and mowing, like succulent plants and larger patios.

They’re also very comfortable with their smartphones and tablets, and increasingly seek ways to control their heating and air-conditioning and security and lighting as well as electronics like televisions and sound systems from their phones. “They want to use their brains for other things, not for remembering whether they adjusted the heat or closed the garage door,” Waage said.


2 replies
  1. George Edward Chuddy
    George Edward Chuddy says:

    I.T.T. Business Acumen for The Palm Coast Project

    Below is an local example of a Questionaire that I.T.T. Community Development used for decades all last Century to ascertain and acquire details about the ‘Prospective Buyers’ needs and wants:
    I don’t know how the ‘Braintrust’ of I.T.T. Community Development Corporation ascertained the changing trends, i.e. from single vanity bathroom sinks to double vanity bathroom sinks, etc.
    Wouldn’t it be great to have Architectural Students evaluate the MANY
    ever changing MODELS offered with a compare / contrast of Societys’ changing needs /trends? Wouldn’t it be even more grand if sometime Daytona State University offers some Architectural Classes; maybe have the students do Case Studies of all the MODELS that were offered for decades?
    We have many notables that were involved in The Palm Coast Project – Mr. Richard Baehr a.k.a by Donald Trump as ‘ The Blue Sky Guy ‘ for his Architectural Renderings and many more – I also have NINE of the original Models first offered by Levitt I.T.T. I am having them digitized and will have them framed and display them in my Levitt I.T.T. Santa Rosa Model for Palm Coasters to see. I also am Steward of Mr. Richard Sabos’ Renderings ( he still maintains a Studio in ARgentina and also a Studio in L.A.). I will have them framed too so that you can see them since they are outstanding now one of a kinds –
    Garfield Welcomes you to Palm Coast
    Welcome to Palm Coast:

    Your Name
    Spouses Name
    City State Zip Code
    Occupation Company Name
    Spouse’s Occupation Company Name

    Head of Household Age Range

    Under 30, 30-39, 40-49, 50-59, 60 above

    Spouse’s Age Range
    Under 30, 30-39, 40-49, 50-59 60 above
    Number of Children

    Children’s Age Range
    1-3, 4-12, 13-16, 16 above

    Do you
    Rent or Own?
    House Condominium, Townhouse , Apartment, Other

    Do you own property in Florida
    Yes No If Yes, where

    Have you ever visited Palm Coast
    Yes No If Yes, how many times have you visited?

    Have you ever talked to a Sales Representative about Palm Coast?
    Yes or No If Yes, When? Where? Name of Sales Representative:

    Your Main Interest in Palm Coast is:
    Permanent Home within one year
    Homesite for Future use, Second Home, Rental Opportunities , Other

    What type of Home are you interested in?
    Single Family, Condominium , Patio or Villa ?

    When would you plan to moveor utilize your New Home? Year:

    Size Two Bedroom , Three Bedroom, Four Bedroom, Other

    Price Range:
    $ 50,000 – $ 75,000 , $ 75,000 – 90,000 , Over $ 90,000

    How did you hear about us
    Billboard, Newspaper, Magazine, Friends/Relatives, By Whom? , Palm Coast Resales, Driving, By Relative, Name, Business, Sheraton Guest, TV/Radio Commercial, Direct Mail, Telephone , Other

    Would you be interested in Vacation Ownership ( timesharing ) in Palm Coast Yes No

    Annual Household Income Range:
    Under $ 19,000, $ 20,000-29,000, $ 30,000 – $ 39,000, $ 40,000 – $ 49,000 , $ 50,000 above
    Household Income Circle # of Contributiors 1, 2, 3, 4 +

    I’d like more informatin on:
    Single Family Homes, Condominiums, Vacation Ownership ( timesharing) Homesites, Industrial / Commercial Opportunities

    Do you know of any Person(s) who would be in terested in learning more about Palm Coast?
    Name Address, Name Address, Name Address, Name Address

    Thank you for your Assistance

    PALM COAST Fulfilling the Promise for Florida

  2. George Edward Chuddy
    George Edward Chuddy says:

    1971 Home Trends and Pricing in Palm Coast Projec

    From June 1971:
    The San Remo, The Santa Rosa, The Boca Rio,
    The Del mar, The Andalusia, The San Marcos
    The Ponce De Leon, The DeSoto, The DeBary.

    The San Remo…………..$ 15,090.
    The Santa Rosa…………$ 18,990.
    The Boca Rio…………….$ 21,500.
    The Del Mar………………$ 22,990.
    The Andalusia……………$ 21,990.
    The San Marcos…………$ 14,990.
    The Ponce De Leon…….$ 24,990.
    The De Soto………………$ 18.990.
    The De Bary………………$ 22,500.

    All Homes have these features:
    Central Aid Conditioning
    Wood Cabinets
    Stainless Steel Sink in Kitchen.
    Ceramic Tile Floors and Walls in Baths
    Complete Landscaping
    Underground Utilities
    Public Water and Sewers

    All General Electric Appliances Including:

    Built-in Dishwasher
    Garbage Disposal
    Push-Button Range and Oven
    Two-Door Refrigerator Freezer
    Automatic Washer and Matching Dryer

    Optional Items:

    Wood Shingle Roofs Sales Price:
    The San Remo……………… $1,200.
    The Santa Rosa……………. 2,100.
    The Boca Rio………………. 1,800.
    The Del Mar………………… 1,800.
    The Andalusia……………… 1,800.
    The San Marcos…………… 1,500.
    The Ponce De Leon………. 1,700.
    The De Soto……………….. 1,700.
    The De Bary…………………. 2,500.

    Stucco Exterior
    Standard on all Houses Except:
    The San Remo………………. $ 900.
    The San Marcos…………….. $ 750.

    Enclosed Garage:
    on all Models…………………. $1,000.

    Big Three Deluxe Appliances
    Extra on all Models…………. $350.

    The aforementioned prices do not include the homesite which may vary in price due to location, water-orientation and other factors. Price of lot not included. All prices subject to change without notice

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply