Just over one-third of homes are purchased by millennials, making them the cohort with the most buying activity compared to other generations—a record they’ve held for the past five years, according to the 2018 Home Buyer and Seller Generational Trends study from the National Association of Realtors.
With 36% of homes purchased by 20- and-30-somethings, they stand as one of the biggest opportunities for builders to make home sales.
Brookfield Residential is tapping into this lucrative buyer pool by designing its California communities to appeal to millennial home buyers. At the company’s New Haven master-planned community in Ontario Ranch, Calif., millennials account for more than 50% of home sales.
The successful 124-acre New Haven neighborhood was ranked as the no. 11 best-selling master plan in the country in 2017, and no. 3 in California that same year, by John Burns Real Estate Consulting.
The community opened in 2015, and when complete will include about 2,500 attached and detached single-family homes, ranging from 976 square feet for a one-bedroom townhome to 3,600 square feet for a five bedroom. Prices start in the $300,000s.
Beyond the attractive price point in a high-priced market like California, Brookfield has honed in on the offerings that will draw in young buyers. Amenities top the must-have list.
“Price is a big deal for these buyers, and remains one of the most important factors for millennials. But there are other pieces to the puzzle,” says John O’Brien, vice president of Southern California Housing at Brookfield. The company focused not only on providing neighborhood amenities like a pool, clubhouse area, and green space and parks, but designed programming around these amenities to create a sense of community among residents. The community sponsors wine nights, outdoor movie nights, lawn concerts, and more, which initially attracted millennial buyers and young families.
“As this demographic started to move in, their friends and peers became interested and saw that it was a place where a lot of millennials lived. They said ‘hey, there are a lot of people my age living here with a similar lifestyle, so I know I’m going to get the neighborhood connection I’m looking for,’" says O’Brien.
An hour away in Los Angeles’s Playa Vista neighborhood, Brookfield is building for the market’s higher-income millennials.
Alison Girard, Brookfield Residential director of marketing, describes Playa Vista--often referred to as "Silicon Beach"--as a creative mixed-use campus. In the center of the community’s 6,000 homes sits 3 million square feet of retail, office, and lifestyle amenities, like restaurants, fitness centers, shopping, a library, and 29 parks throughout the master plan. Residents can catch shuttle busses to the nearby beach and the community is within walking distance to many jobs, at firms like Facebook, Google, Yahoo, and other tech companies.
And like New Haven, Playa Vista offers its residents more than 30 events throughout the year, from concerts and movies to Shakespeare in the Park.
“This is a really walkable community where you can live, work, and enjoy your free time all in one place, which is what I think has been so attractive to millennials,” says Girard. “It’s a dense community that breeds connection and engagement, and is a place where residents develop authentic and natural relationships.”
Another trend that has transformed the way this demographic lives is teleworking, which is blurring the lines between home and office. Technology is also a top selling point for Gen Y buyers—for those working remotely or who simply like the idea of a connected home. On the entry-level end, that looks like high-speed gigabit internet that’s built into the home like those at New Haven. For the buyer who can afford to spend a little more, smart home features are a hit.
“At Playa Vista, we made the smart home standard with many of our new builds. We included a system that controls door locks, lighting, and thermostats all from a smartphone,” says Girard. “Millennials can’t be without WiFi, so we also have an additional wireless access point on the upper levels to help increase the strength of connectivity.”
O’Brien and Girard agree that when it comes down to it, this demographic is looking for the same home features and amenity offerings in a community whether they're buying an urban home with a $1 million price tag or head a little further out of the city to find something more affordable.
“They say millennials only want to live in the city, but the reality is that they do end up getting married and having kids, and they want their family to live in a place with features of a somewhat traditional neighborhood,” says O’Brien. “New Haven has the features of a traditional neighborhood but with upgraded amenities, technology features, walkability, and a sense of community that appeals to millennial buyers and makes it an attractive place to live. They want this kind of lifestyle whether it’s in an urban setting or not.”
