The terms Millennials and Gen X are thrown about frequently, but many people are not clear of who falls into that demographic. Generation X was born between 1965-1980 (39-54 years old), and millennials were born between 1981-1996 (23-38 years old).
Millennials and Gen X are the majority of consumers spend-wise which includes the property market. They form 42% of the population.
These generations are driving changes in the economy and more specifically, the Richmond rental property market. They are creating new trends every quarter.
Here are our observations of Millennial and Gen X impacts the various markets:
Why would these generations lean strongly towards renting over buying? With the cost of living skyrocketing and economic conditions being shaky globally, there is a lack of trust by Millennials and Gen X building an asset portfolio. This will mean a long phase of a strong rental market whilst these consumers rebuild their confidence.
Hand-in-hand with this economic outlook is a strong favouring of participating in a trendier and costly lifestyle. This includes living in more exclusive locations that are affordable for a purchasing perspective. But it is not only that.
The attractiveness of renting is that it suits a nomad lifestyle. You can up and leave at very short notice. With countries worldwide offering Digital Visas for two years at a time, Millennials and Gen X can live in the West Indies or Mauritius with ease and very little red tape.
They are also not keen on ‘adulting’ hence having maintenance done by a landlord is an attractive factor. As they are renting their homes, they will be renting furniture, equipment, cars and even clothing.
If they do buy, it will not be a forever home but one that can be an income-generator when they move to “enter name of exotic location”.
Real estate for rent or up for sale has to have a strong and complex online presence if you want the Millennials and Gen X to spend their money with you. They will not spend a Saturday or Sunday driving around neighbourhoods looking for property for sale/rent signs.
Not only does your UX and UI have to be spot on but the images must be professional (this means “do not user your mobile phone to take pics!), and the property should also have a video and top quality content writing to describe the property.
Miss one of these factors and you will fall down the rankings faster than a drunk Wallaby.
So you are probably getting the impression that these two demographics do not want to be tied down. You are right. They are striving for an absolute minimalist lifestyle with fewer material possessions and compact, unwasteful living spaces. This lifestyle is followed in order to increase their lifestyle flexibility and financial security.
They will also be at home less as they will be exploring the world. They will not have regular 9 to 5 jobs and see ‘sitting at a desk’ for 45 hours a week as anathema. Compact, efficient, multifunctional lock-up-and-go spaces will continue to increase in popularity.
They DO want lots of energy efficiency and very little carbon footprint in their homes and in their lives generally. They will also check on fair trade factors and cradle to grave carbon footprints. The energy efficiency will be driven both by ethics and by economic cost-benefit analyses.
As these generations impact more and more on the market, landlords and real estate agents will have to respond creatively and quickly. With these helpful facts in your knowledge base now, your Richmond rental property has a greater chance of driving a greater return on investment for you.
Contact Vibe Property today for professional help in renting out and managing your Richmond rental properties. Our brilliant team will also help you as a tenant, finding you the BEST rental home to keep you comfy for years to come!