Beacon Transcript – In a recent report, Home Depot has tried to define Millennial first-time homebuyers and learn what makes them so different from previous generations. Millennials have been a puzzle for industry analysts ever since the term was first coined.
These elusive shoppers are highly unpredictable, but they do have a set of common traits analysts are currently striving to decipher. Retailers have been desperate to read this important segment of shoppers to be able to better suit their needs.
And now the housing market seeks to better know Millennials as this generation is reaching the median age to buy themselves the first home. According to the Home Depot report, Millennials are very into energy efficient and connected homes.
However, homes need to have their owners personal touch and leave room for artistic expression. The desire to stand out in the crowd is currently the top driver in many of the Millennials’ decision. And buying a new home is no different.
“[Millennials are] a lot more focused on bringing some personality into the home,”
said Kevin Hofmann, the company’s CMO.
Hofmann noted that this cohort is currently in six-year delayed circle for purchasing their first home. Millennials tend to buy their first home around the age of 35, while being notorious for still living with their parents late into their adulthood.
Analysts noted that this group reached a historic high when it comes to the age they decide to build their own household. On the other hand, a federal report showed last week that homeownership sank to its lowest level in more than 50 years.
Another common trait of this generation is that they tend to live in cities as long as they can, and they move to the suburbs the moment they have a child. Analysts observed this trend in many of old Millennials, i.e. those aged between 28 and 36.
This group is also more interested in energy efficient homes and they seek to have more alternatives to choose from. For instance, baby boomers and Gen X members were content with 5 different types of granite, but now Home Depot have 30 types on stock.
And the assortment is even wider if Millennials place an online order. Home Depot’s brick and mortar locations can host just 35,000 units of a specific product, but its online stocks rae larger than 1 million.
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