Millennials are a unique generation made up of those born between 1980 and 2000. When it comes to home buying for this generation they have specific wants and tastes. Millennials prefer an environment-friendly home and will pay extra for this type of home.
According to the National Associations of Home Builder’s report, “What Home Buyers Really Want” published this year this generation is willing to pay for green features that are energy-efficient and cost-saving. In fact, 83% of Millennials are concerned about the effects home building has on the environment and 16% will pay more for an environmentally friendly home.
As seen in the chart, the 83% breaks down as the following. The 16% who will pay more, 33% who are concerned about the effects on the environment but would not pay more for a green home, and 34% who care about the environment but are not in the market to purchase a home.
When looking for a new home, Millennials want a more energy-efficient home that will in return reduce utility bills. In the data released by the NAHB, when asked, Millennials would pay upfront cost for a $1,000 in utility bill savings. Twenty-six percent say they would pay between $1,000 and $4,999 upfront, 20% would pay less than $1,000 upfront, 19% would pay between $5,000 and $9,999, another 19% fell into the bracket of paying $15,000 or more and 15% would pay $10,000 to $14,999 upfront.
Green certification done by a credible and independent third party also plays a big roll in how much cash Millennials will spend on a home. For a home that is certified and meets an above code standard on energy efficiency 32 % would pay between $1,000 to $4,999 more, 23% would pay between $100 and $499, 15% would pay $5,000 or more and 11% would shell out $500 ti $999.
When it comes to a certified home that meets above water efficiency standards 31% would pay between $1,000 and $4,999 more, 25% less than $100 more, 20% between $100 and $499, 13% over $5,000 and 12% would pay more than $500 to $999 upfront.
Millennials were asked how important certification that meets above code standard for indoor environmental quality is to them. When it comes to paying more for this certification, 30% would shell out $1,000 to $4,999 more upfront, 27% would pay less than $100, 19% would pay between $100 and $499, 13% would pay over $5,000 and 11% would pay between $500 to $999.
A holistic green standard is important to this generation. Builders looking to sell to this demographic definitely want to build green.
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