There is generational shift afoot among consumers that will eventually change business marketing strategies and could transform the home buying market, according to Bill Carroll, of Model Home Interiors, an interior merchandising firm based in Elkridge, Md.

That generational shift — from the baby boomers to millennials, those who were born between 1980 and 1995 — is already having an influence on some housing markets.

In some markets, boomers’ suburban homes, with their accompanying long commutes, are losing some of their appeal and are attracting fewer interested buyers.

The city’s edges, where restaurants and cultural life are within walking distance, are the current hot spots in today’s market.

Smart builders who have saved their profits and increased their marketing efforts during the downturn are generally better positioned to take advantage of this shift.  

Meet the Millennials

Like the baby boomers before them, today’s 80 million millennials — also known as GenY, the EchoBoomers and the Net-Generation — are a consumer force to be reckoned with. A year from now, they are projected to have more economic influence than any other age group.

So who are they?

Millennials are tech savvy and can multi-task with ease. Most can talk, walk, listen, type and text with their thumbs at the same time.

And their priorities are simple. They come first.

They were raised by doting parents who told them how special they were. They grew up playing in Little League and youth soccer games where they were told “everyone is a winner” and no one lost a game or match.

In part because of that indulgent upbringing, today they only take “yes” for an answer. More importantly, they are not afraid to walk away from a job or a sale if they don’t get what they want.

	Millennials are seeking a place to connect to the virtual world that is also close to downtown — where working and playing are within walking distance. Photo courtesy of Model Home Interiors.

Appealing to Millennials

Bea Fields, of the Bea Fields Companies, a consultant who focuses on helping businesses market to millennials, believes businesses should understand the millennials’ social preferences and key characteristics if they are to have success reaching out to this growing consumer group. Millennials believe:

• Life is not all about work. It’s about being happy, giving back and having fun.
• Keeping up with technology and current trends is critical. It helps them accomplish what they need to do in half the time.
• Diversity is integral to their lives.
• Getting and receiving feedback is critical for their development.
• Building relationships and networking are key elements of their accomplishments.

What Millennials’ Want in Housing

Urban renewal areas make sense to millennials and they embrace the bold open spaces of city lofts, apartments, condos and townhomes that are downtown or on city fringes.

They prefer housing that is smaller and energy-efficient, and they appreciate value engineering. They have little desire for sunrooms, large soaking tubs or rooms that are two stories high, because those features squander too much energy.

As a group, these conservation-minded buyers prefer green building and homes that use sustainable, recycled materials.

Holly Polgreen, president of the interior design firm Carlyn and Company in Great Falls, Va., says that millennials appreciate outdoor spaces that extend living space and create added space for socializing.

“They love to party and hang out in groups,” Polgreen said, while noting that outdoor rooms should be designed as thoughtfully as indoor spaces, with high-end finishes and furnishings.

This trend should also be incorporated when creating public spaces.

“Creating a sense of community and offering gathering spaces is a key ingredient for multifamily developers,” said JoAnn McInnis, also of Carlyn and Company. Clubhouses, she said, should include amenities such as fire pits, two-sided fireplaces, outdoor seating and outdoor bars to be used as extensions of clubhouse lounges.

Polgreen also noted that because technology is so much a part of the millennials’ lives, computers, televisions and iPods should be openly featured in every room, rather than hidden in armoires.

“The advent of bedroom furniture that includes charging stations for electronics is a perfect example” of how technology can be incorporated in ways that appeal to millennials, agreed Bill Carroll of Model Home Interiors. “Even the mirror over the dresser is being replaced with a flat screen TV.”

Desperately Seeking Mid-Century Modern

When it comes to furnishing models, forget styles like Pottery Barn and Old World Tuscan that appeal to the millennials’ parents and grandparents. Instead, think West Elm, IKEA and Design Within Reach.

“Anything mid-century modern from the ’50s, ’60s and ’70s appeals to their new urban sensibility — with nostalgia added to the mix,” said Carroll. 

Including furnishings and fashion from Africa, Asia, China, France, India, Morocco, Malaysia, South America and Tibet that touch on their global awareness will also appeal to this buyer. 

Every generation, including the millennials, appreciates spacious kitchens and large dining spaces. But with this generation, dining rooms also are being influenced by the restaurant culture — with large dining tables and banquette benches part of the mix.

Designers also should consider living rooms as an extension of the dining room for this market. Furnishing them with lounge chairs for gathering before dinner is not out of the question.

Millennials appreciate “high performance” fabrics — fabrics like ultra suede and Sunbrella® that are easy to clean and maintain and that feel good, said Carroll.

Vinyl also is popular, said Polgreen.

The Green Scene

In keeping with the millennials’ eco-awareness, think green, sustainable building and design when building and furnishing homes.

Use color pallets of earth tones, blue sky, pure air, serene water, slate blue, stone gray and vegetal greens.

Recycled materials, chunky slabs of wood and even driftwood used in furnishings are hot looks with this generation, as are bamboo, cork and concrete floors.

Millennials even consider linoleum — with its health-friendly benefits and mid-century American look — cool.

With the future direction of housing trends still unknown as the industry navigates the downturn, now just may be the time to begin designing and delivering homes for the millennial generation. Our industry’s future may depend on it.

This article was submitted to the Inspired Interiors BLOG by: Jeff Kida

ATTENTION MILLENNIALS! Call Inspired Interiors today to schedule your design consultation with Jeff Kida – - – 773.728.0419

Source: Georganne Derick, MIRM, CAASH

At a time when we are ALL looking forward to the future, here are some interesting trends occuring in the home.  To hear more about these trends attend our upcoming design seminar in our showroom – - – see website for details…

When the homebuilding industry descends on Las Vegas on Jan. 20 for its annual trade show, a highlight as always will be a project called the New American Home. This model house—a new one gets built each year—serves as a showcase for the industry’s latest technology and trends. The massive four-bedroom, five-bath structure popping up in suburban Las Vegas this year may seem a little out of touch with the times as the nation suffers through the worst housing slump in decades. But out in the real world, architects and builders are busy trying to figure out how to put some of the same design features into new homes. Such trends are worth noting: Having amenities that appeal to buyers a decade or more after your house is built will help it hold its value. We list below some of the most important new design features you’ll see in homes.

Indoor/Outdoor Living Just since 1992 the number of U.S. homes built with patios or porches has doubled. The New American Home in Las Vegas has a giant backyard that features a covered area with a flatscreen TV and pool table as well as a detached “rejuvenation room” for relaxing. New homes in warmer climates are being built with courtyards that provide a connection to the outdoors but also give shelter from wind and privacy from neighbors. This is critical as builders try to cram larger houses onto smaller lots to keep land costs down. And there’s a history to them, notes Newport Beach (Calif.) architect David Kosco: “The courtyard goes back to Roman times.”

The Return of the Basement With lot sizes limited, builders are looking for space underground. Once a typical feature of homes in the Northeast, basements are rising in popularity nationally as a way to create extra space. New technologies in insulation and waterproofing are allowing builders to add basements in any climate. They can serve as game rooms for kids, home theaters, or just the “man-cave” for Dad. Builders are even creating underground garages for homes and townhouses to free up space for living areas above, notes Irvine (Calif.) architect Rick Emsiek.

The Death of the Living Room The kitchen, living, and dining areas are continuing to merge into a great room or family room. In a 2007 study conducted by the National Association of Home Builders, half of those surveyed said they would do without a formal living room if it meant a larger family gathering space. In some cases this is a refection of the connection to the outdoors as well, as home buyers want fewer walls and unobstructed views out into the backyard, says Craig Delahooke, director of custom development for John Laing Luxury Homes.

The Home Office No longer just a spare bedroom, the home office is evolving into an entirely separate structure such as a casita in the backyard or even a separate wing near the garage. Having a separate entrance for the home office allows today’s increasingly mobile workforce to receive work-related visitors or hire an assistant at home without having these people traipse through the main house.

Wireless, but not Cordless With wireless laptops allowing people to carry their computer to any room, that little computer nook that was popping up at the top of the stairs in many new homes is starting to disappear. Instead you’re likely to see a charging station or “Mom’s Desk,” a little space, typically in the kitchen, where cell phones, laptops, and other devices can be charged.

The Soft Loft The industrial look with concrete floors and exposed brick is over. Thousands of these pseudo SoHos popped up even in cities such as Dallas and Houston that lacked an industrial past. Downtown lofts have seen some of the steepest price declines in this bust. “Architects love to show these wide-open floor plans, but the reality is people want some privacy,” says Los Angeles architect Jonathan Watts. He says new condos are returning to more traditional floor plans. Lofts are adding hardwood floors, sliding doors, even wall-to-wall carpeting to warm them up.

Say Bye to Bling As befits this economy, homes are getting less ostentatious. That means less ornate wood, stone, and iron work. No more grand entrances with curved-marbled staircases. The stairs are shifting to the side of the home and back to their utilitarian purpose. Even fireplaces are flickering. Only 46% of all new homes came with one in 2007, according to the U.S. Census. That’s down from 59% in 1996.

The Green Badge of Honor It almost goes without saying, but green continues to be in, despite the latest slide in gas prices. Even the giant New American Home promises to use “net-zero energy” thanks to devices such as solar panels and designs that let in natural light. Home buyers used to love wowing their friends with the size of their McMansions. Now, says Sean Degen, vice-president for architectural services at home building giant Pulte Homes, “you’re going to see more people having a green badge of an honor.”

Aging in Place Builders say it’s rarely something they overtly try to sell, but consumers are responding to features such as wider doors that can accommodate a wheelchair or walker, master bedrooms on the first floor, and tasteful looking handrails in the shower—amenities that will help baby boomers stay in their homes as they grow old.

Article submitted to Inspired Interiors BLOG by: Emily Norris, ASID 

Call Inspired Interiors today to schedule an appointment with Emily Norris to incorporate some of these trends into your home – - – 773.728.0419. 

Source: Business Week, Christopher Palmeri, January 6, 2009