How Millennials Will Affect the Australian Real Estate Market in 2017
Australia’s real estate market in 2017 will be marked by slight demand and supply fluctuations, mortgage rate hikes, and a few fresh interior design trends…but one more major twist is looming on the horizon that may spark a massive change in the realty game for Aussie home sellers. As more and more millennials continue to jump on the home buying wagon, property markets in the Land Down Under will be in for a few turns that have little to do with hot locations, loan interests, or property development plans. This year, millennial home buyers will be behind the realty wheel, and here are just a few property market aspects in which the impact of millennials will be most pronounced.
- Rising Demand for Turnkey Property
As an increasing number of 18-to-34-year-olds embark on house hunts in the Land Down Under, the demand for move-in ready property will go up a few notches in suburban districts. A continuation of last year’s trend, millennial home buyers will remain more eager to cash out for a piece of turnkey property in 2017 than to settle for a less costly home in need of a partial or complete overhaul. In 2017, millennials will gladly pay more for a piece of turnkey property if the higher initial price can save them time and money, which they’d otherwise have to spend on long-winded renovations.
- Affordability Before Location and Frills
As far as the quality-price ratio is concerned, the 2017 real estate market will be driven by a rise in demand for affordable housing, whereas property features and location will be placed on the back burner. This year, millennial home buyers will be quite happy to slap their name on a piece of property in the suburbs, granted the investment promises long-term savings compared to flat rentals. Rising mortgage rates will remain a major problem for property sales in Australia this year, especially with young would-be homeowners who are aware of the risks that high housing loan interest rates entail in the long haul.
- Size Does NOT Matter All That Much
When it comes to size, millennial home buyers in Australia won’t be as quick to fall into the trap of added square footage as their parents were back in their day. Today, millennials are more financially savvy than previous generations, and they know that more habitable space entails higher utility expenses in the long run, which is why smaller homes are in higher demand than king-sized residential property. For this reason, real estate agents and home sellers will have to invest extra funds and effort into whistle-worthy upgrades if they want to sell a spacious home to a member of the young and property-hungry lot.
- Alternative Housing in High Demand
Along with the growing demand for small homes in suburban districts, 2017 will also be a year in which innovative housing options will jump on the trending wagon. Although many home buyers will still prefer classic single-family homes and condos to alternative housing, many millennials and Generation Y-ers will decide to move out of rental flats and get a mobile or prefab place of their own. Another reason behind the rise in demand for alternative housing is the lower cost and speedier completion of a mobile home remodel. For a millennial looking to settle down, every dollar counts. If they can save money by switching from a brick-and-mortar rental flat to a 21st-century housing alternative with lower long-term maintenance and upgrade costs, they will.
- Sustainable Housing is Here to Stay
Eco-friendly home features have been growing increasingly popular over the past few years, and 2017 design trends won’t stray from the market mainstream. In the year ahead, energy-efficient and sustainable home features will remain in high demand. Unlike baby boomers, millennials know that energy star appliances, LED lighting, water-saving gizmos, and other environmentally friendly elements aren’t only beneficial for the planet – they entail long-term savings, overall well being, and improved quality of life. In addition to that, sustainable materials will be a hot interior design feature this year, which is why homeowners and realtors eager to get the biggest bang for their offering and reduce DOM time should use renewable, naturally sourced materials to update the hardware.
As an increasing number of millennial home buyers continue to join the house hunting boat, the Australian real estate market landscape will soon undergo substantial changes. From the rise in demand for turnkey property and smaller homes in the suburbs, to the growing popularity of eco-friendly features and alternative housing options, the property market in Australia will be in for a range of shifts and a few unforeseen plot twists. Home sellers and realtors…you’d better start taking notes and conducting lucrative home updates if you want to market your property to millennial home buyers.