The Millennials: The Next Big Consumer Force
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