Millennial influence in the real estate industry

The millennial generation presents a significant opportunity for the real estate industry which has long been steeped in tradition with the shift from the old guard being a bit slower than many other sectors.

CEO of Lew Geffen Sotheby’s International Realty Yael Geffen said that globally, the new generation is already infusing the real estate industry with fresh perspectives, innovative ideas, and a commitment to sustainability, inclusivity, and technology but that we are lagging a little behind in South Africa.

To continue shaping a more dynamic and responsive market that caters to the evolving needs of a diverse range of buyers and sellers, Geffen believed that this could be achieved by what the new generation brings to the table.

• Tech-savvy expertise
Millennials are often referred to as the “digital natives,” having grown up in an era of rapid technological advancement. This tech-savviness gives them a distinct advantage in an industry that is increasingly reliant on digital tools and platforms.

Their deeper understanding of – and ease with – tech often makes them capable of working more efficiently and in some areas, they can almost halve a traditional workday through their expert use of tech. Unlike the old guard, this generation often only needs bite-sized information to get a task done. From virtual property tours and online listing platforms to data analytics and social media marketing, millennials are leveraging technology to streamline processes, enhance customer experiences, and stay ahead of market trends.

• Innovative marketing
Millennials have a deep understanding of social media and the power it wields so they bring fresh and creative approaches to marketing properties, using platforms like Instagram, TikTok, Linked-In and YouTube to showcase listings in engaging ways.

Their ability to craft visually appealing content resonates with younger buyers and helps properties stand out in a crowded market. They also use data and analytics to engage very effectively on customer communication platforms

• Sustainability consciousness
Sustainability is a core value for many millennials, and they are influencing the real estate industry to prioritize eco-friendly practices.

Whether it’s promoting energy-efficient homes, advocating for sustainable building materials, or championing smart home technology to reduce energy consumption, millennials are driving a shift towards environmentally responsible real estate practices.

• Collaborative mindset
Millennials value collaboration and seek diverse perspectives and this mindset has led to the rise of collaborative workspaces, co-living arrangements, and shared community spaces within real estate developments.

Their focus on community and shared experiences is influencing the design and development of properties that foster connections and social interactions.

• Preference for experiences
Millennials often prioritise experiences over material possessions, and this mindset extends to their real estate choices.

They seek properties that offer lifestyle benefits beyond the physical space, such as proximity to cultural attractions, dining options, and recreational areas, and developers and agents are responding by highlighting the experiential aspects of properties, such as walkability and access to vibrant neighbourhoods.

• Emphasis on flexibility
Flexibility is a hallmark of the millennial generation, and this is reflected in their approach to real estate. The rise of remote work and the gig economy has led to a demand for flexible living arrangements, such as co-living spaces and short-term rentals. Millennials are exploring innovative housing models that adapt to their evolving needs and lifestyles.

• Inclusive and diverse outlook
Millennials value diversity and inclusivity, and they are pushing the real estate industry to be more representative and inclusive in its offerings.

From advocating for affordable housing solutions to promoting diverse architectural styles and designs, millennials are ensuring that the real estate landscape is accessible and welcoming to everyone.

• Data-driven decision-making
Millennials are known for their data-driven decision-making approach and when it comes to real estate, they are leveraging data analytics to make informed investment choices. This analytical mindset helps them assess market trends, property values, and investment potential with precision, enhancing their ability to navigate the complex real estate market.

• Preference for urban revitalisation
Many millennials are drawn to urban environments characterised by walkability, cultural amenities, and public transportation. Their preference for city living is contributing to urban revitalisation efforts, encouraging developers to focus on mixed-use developments that blend residential, commercial, and recreational spaces.

• Evolving homeownership philosophy
The millennial approach to homeownership differs from previous generations and while owning a home remains a goal, millennials are more open to alternatives such as co-living, renting, and shared ownership models. Their willingness to challenge traditional norms is reshaping the housing market and encouraging innovation in property ownership.

The millennial generation is infusing the real estate industry with fresh perspectives, innovative ideas, and a commitment to sustainability, inclusivity, and technology,” said Geffen.

She added that their influence is not only changing how real estate transactions are conducted but also how properties are designed, marketed, and experienced, and to stay abreast of a fast-changing world, we need to embrace what millennials bring to the industry.

“The real estate industry has been a powerhouse for decades and certainly not everything needs changing but, by aligning a bit more with millennial values and preferences, the sector can tap into this influential demographic’s potential. Because, at the end of the day, the world is changing and as the millennial generation becomes a driving force in the real estate market, those who cater to their needs will emerge as frontrunners in this dynamic landscape.”