3 Factors Shaping Millennials' Views on Real Estate Investing

 

Millennials will soon become the dominant consumer in the commercial real estate market. Commercial real estate is no exception, with their spending, working, and lifestyle habits having a big impact on almost every sector. Millennials are a hugely important demographic for sponsors to understand if they want to successfully attract and retain Millennial investors. In this blog, we explore how three factors are shaping Millennials' views on real estate investing: geography, social media use, and technology adoption.

Three trends that influence how Millennials view real estate investing can be found in the following pages.

Technology and Knowledge Access

The Millennials are the first generation to develop up in a digital world with readily available Internet access and unlimited data. The availability of Internet connectivity from an early age has affected the way Millennials communicate, share information, and research. Because of this, they have higher standards for speed, accessibility, and transparency when it comes to their financial investments than prior generations do. In fact, three out of five Millennials would be more inclined to invest in real estate if technology allowed them to do so more efficiently. They are used to receiving information, peer feedback, and suggestions at their fingertips, 71% of Millennials consult market data when making investment decisions, whether or not they're wise to it.

Increased demand for social responsibility

It's no longer just a forward-thinking, aspirational aim for businesses to embrace their stake in society. It has, in fact, become a major concern to link objectives with projects that support the world's well-being. These measures help to develop a good corporate image for the company, with 73 percent of Millennials stating they would be willing to spend extra on eco-friendly. As a result, sustainable business practices are increasingly valued by investors than they have been in the past. Global sustainability concerns are increasingly seen as critical to a property's long-term financial success. Prior to investing, this type of message encourages customers to investigate the funds' environmental, social, and governance policies further.

Millennials are interested in real estate ventures that impact society and the economy, such as mixed-income housing, community and healthcare buildings, and co-working. They're also more inclined to support initiatives that aim to be environmentally responsible and long-term.

Living Arrangements for Non-Traditional People

For the first time in 100 years, young people are more likely to. The economy has a lot to offer. With employment programs, outstanding healthcare benefits, and quality amenities, there's no shortage of choices for your employees. Since 2009, student debt has increased by more than $1.4 trillion as a result of recent college tuition hikes. Investing in more expensive real estate, or even their retirement, many Millennials feel compelled to pay off their debts as soon as feasible.

These are just a handful of the elements that influence Millennials' investment decisions today, as well as the way they make financial decisions. Forward-thinking businesses may prepare for the growing impact of Millennials in commercial real estate by using an online investor and real estate document management system like Docupile.