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What Luxury Homes will look like for Millennials

What will luxury homes look like for Millennials? For the future generation of homeowners, sustainable luxury, innovation, and energetic design will be the new signal of affluence.

That doesn’t mean that there won’t still be incredible class, timelessness, and luxury involved in the design process.

From luxurious penthouse apartments to 10,000-square-foot “humble abodes,” Millennials still want all the creature comforts.

So, what will luxury homes look like for Millennials? And what will be trending in luxury home design for this forward-thinking generation?

Millennials want a home that they can grow into — and they’re willing to pay for it.

Because Millennials lived at home for longer, they focused more on career goals, education and likely landed better or equal salaries to their parents.

Which means that even outside of the luxury home market, they’re in a position to skip the starter home entirely and purchase a more expensive home instead.

In fact, 59% per cent of millennials have already achieved their dream of home ownership — at least, that’s according to a survey facilitated in May 2018 by Canadian mortgage insurer Genworth Canada.

Keep in mind that’s high, according to Statistics Canada — who only reported a rate of home ownership of 43.6 per cent for 20-34-year old’s in 2016.

However, the Genworth data proves that Millennials are going to be buying and building homes in the future one way or another. The proof is in the pudding: over the next two years, 30 per cent of millennials plan on making their first home purchase.

Home amenities and community are important to Millennials and Generation Z

As the saying in real estate goes, “location, location, location”.

The up-and-coming homeowner generation is tech-driven but integrated with social channels in a way that considers their environment and community — as a priority.

Millennials want their luxury homes to have a new, clean, and modern design, but are less concerned about aesthetic and more interested in convenience, community, function, and amenities.

Homes that have walkability, are near restaurants and shops or have a few feature things to do in the area are all important facets of consideration for the Millennial homeowner.

For those who are looking to put roots down, close proximity to parks, schools, community centers, and other kid-friendly services make for attractive living features to families.

Space is still at a premium

With the Millennial generation entering into the Boomer home market, they’re looking at properties with an average house price of about $500,000 and around 2,500 square feet — for the most part in Toronto real estate.

For luxury residences, that square footage will only continue to grow.

It’s true that Millennials care about the environment, having a mindful carbon footprint and are well-acquainted with the TLC “Tiny House” and “nomadic” lifestyle trend.

However, for those that can afford it, they want maximum space optimized to their surroundings —and with a minimalistic design.

Millennial luxury homes will also need to be large enough for entertaining.

Inside there may be the main kitchen, as well as a second kitchenette to make dinner parties less cluttered.

Many home builders and architects can also build out extended butler’s pantries or add additional sculleries that provide more storage and cooking space.

Millennials want to experience a seamless transition between the indoors and outdoors

Perhaps influenced by their “Flower Child” parents, Millennials have always displayed a sense of altruism towards their environments.

They also grew up in a period of time where they can easily remember life before technology, and life after — in vivid colour.

Not unlike their parents’ childhoods, Millennials can easily remember playing outdoors often and with neighborhood friends.

Further, with tech start-ups like Tesla and Apple becoming remarkable testaments to the digital transformation era, it makes sense why this generation cohort wants to bring a sense of holism and simplicity into their homes.

To incorporate nature in a luxurious way, builders and architects are adding contemporary features with accordion-style glass doors, as well as waist-high folding glass windows over kitchen counters, to blur the lines between inside and out.

In some ways, it makes sense why this “Instagram-reel-worthy” inspired generation has an eye for contemporary luxury home design — one that keeps eco-friendly sustainability features in mind.

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Here’s Why Millennials Should Build Their Homes Instead of Buy

Millennial homeownership. It’s not news to anyone that Millennials aren’t buying homes in the same way that the previous generation did.

You might be thinking… Fact or fiction?

Turns out there might be some truth to this. But it doesn’t mean they don’t still have dreams of “millennial homeownership”.

In fact, in Canada, Millennial homeownership rates are consistently higher compared to other countries.

Naturally, Toronto and Vancouver markets have some of the highest ownership rates, among other cities like Calgary which surprisingly has the highest percentage of homeowners under 35.

The report goes on to indicate, that Millennials ultimately need more housing options. So it’s not so much about not having a desire for millennial homeownership. But rather, more so to do with college debt and rising home prices, and the 2008 recession that has left many Millennials choosing to live at home longer instead.

While that’s enabling them to save up longer to make a down payment on a home, it’s still increasingly getting more difficult to get into the real estate market today.

Urban city dwellings make renting look more attractive because that way their lives can remain “Instagram-nomadic”. While there’s a strategy to this, it’s important to consider both sides of the coin.

On the one hand, renting allows you to be more adaptive to changing jobs and cities frequently.

On the other hand, you’re missing out on a lucrative opportunity to establish equity in a home and plan for a future.

There’s no denying that getting into today’s real estate market is difficult. Which is why in so many ways, building a home is the best option for Millennials.

Here’s why.

The cost of entry is generally much lower

New homes are generally more spacious, with a medium size of about 2,500 square feet.

Which means the ballpark cost per square foot is around $100 give or take. This is significantly lower cost per square foot than what you would pay in square footage for an established, existing home.

Additionally, if you’re building a home you only pay for what you want.

If you end up choosing to buy resale, you inherit a number of existing features that you pay a premium for. Even if you don’t want them!

You can custom-tailor every detail to your liking

This is probably one of the most attractive reasons to build a home for Millennials.

Who wants to live with someone else’s structural problems or taste in décor?

For the same amount of money (or less) you can build a home that’s completely custom to your own style and preferences.

More than that, you can include any special requests that are specifically tailored to your lifestyle.

While renovating an older, resale home is possible, you can’t make changes to the floorplan too significantly. Oftentimes, general contractors will come up against structural barriers and other issues that restrict your creative design wants.

More than that, while the renovation process is the right choice for many. In some cases (especially ones that require extensive maintenance) it can indicate other damages that have been done under the surface in an older home.

The fact of the matter is, while it’s always possible to renovate an older home, you just can’t get full customization like you can when you build from the ground up.

For Millennials, building a new home means that you can also leverage the latest in industry trends and SMART home technology. [link to internal post]

By ensuring that your home is built with the latest materials, Millennials can benefit from more durable and energy-efficient options that save them money and positively impact the environment.

Maintenance is less expensive

It’s pretty much a no-brainer, older homes have more wear and tear.

Which means certain elements of the property may need more maintenance.

Even worse, you may purchase a new home that has a laundry list of features that need to be replaced or are on their last legs. That sounds expensive.

If you build your home, there’s considerably less upkeep — which is one of the primary benefits to new construction.

Everything in your custom home is new and under warranty. Sometimes, your entire home can be protected for up to 10 years before you have to pay out of pocket. Win-win.

Financial programs are available to new home buyers

At the end of the day, there’s no wonder Millennials aren’t wanting to buy homes. You’ll need to consider having enough savings for a down payment, ensuring that your credit score is in good standing and that your job qualifies you to apply for a mortgage securely.

With many Millennials are harboring large student debt loans, there’s no wonder that buying a home and making a large financial investment feels overwhelming.

The truth is, it is possible for you to get into the real estate market.

Connect with a well-informed mortgage agent who can fully explain the entire buying and financing process. You’d be surprised to discover that building a home is much more affordable than you think.

From a financial perspective, once you have a plan and budget laid out, you’ve already figured out half the battle.

With all of the tax savings and first-home buyer incentives explained, building a home is a much smarter way to invest your money than rent.

Renting a property is like flushing money down the toilet.

Your money isn’t going back into the equity of the home, you don’t have any assets and you’re essentially helping someone else to pay their mortgage.

When you reframe home ownership to look at your property as not only a place that you live but a save planning; home ownership becomes the clear, most-advantageous choice.

Building your dream home doesn’t just mean you become a homeowner.

It means freedom. As in, financial freedom.

As a Millennial, you likely want to resist the confines of what’s expected of you.

Whether you remain lusting after a nomadic “Instagram lifestyle” or plan to put down roots for a while.

Build a home instead.