The Millennial Market–Shaping the Future of New Construction
At Ernest Homes, we’re always watching how buyer trends shape the future of new construction. One group continues to influence the industry more than any other: Millennials. Born between 1981 and 1997, Millennials now make up the largest share of homebuyers in the country — and their preferences are helping define what modern new homes look like.
Millennials Enter Their Homebuying Years
With many Millennials now in their late 20s to late 30s, they’re entering the “settle down” stage of life. Marriage, children, career stability, and financial planning are driving them to search for homes that suit long-term needs. This year, nearly half of all mortgages are expected to be financed for Millennial buyers, far surpassing Gen X and Baby Boomers.
Contrary to the myth that Millennials aren’t interested in owning homes, research shows the opposite. A Fannie Mae study found that most Millennials consider homeownership more practical and financially sound than renting, thanks to the stability, privacy, flexibility, and control it offers.
The Barriers: Down Payments & Budget Concerns
For many Millennials, the biggest challenge isn’t desire — it’s affordability. Flat wages and student loan debt make saving for a down payment difficult. After closing costs, there is often little left for renovations, upgrades, or repairs. Because of this, Millennials tend to favor:
- Move-in ready homes with modern features
- Smart home technology
- Energy-efficient appliances and layouts
- Open floor plans and home office space
- Convenient, family-friendly locations
- Reliable high-speed internet and strong cell service
Nearly half of Millennials prefer brand-new homes to avoid major maintenance concerns — making new construction an ideal match for their needs.
How Millennials Make Decisions
As the first generation to grow up with the internet, Millennials approach homebuying differently than previous generations. They research extensively, compare dozens of options online, and rely heavily on virtual tools such as photos, floor plans, digital tours, and reviews. This makes a strong online presence essential for today’s builders.
Although they spend significant time researching independently, Millennials also seek guidance. They value transparency, quick communication, expert answers, and a supportive experience from their builder. They’re more likely to schedule multiple meetings, ask detailed questions, and want reassurance throughout each step of the process.
The Influence of Family Support
Due to financial hurdles, many Millennials turn to parents or relatives when making their first home purchase. Some families contribute to the down payment or assist with financing. In these cases, homebuilders must build trust with both the buyer and their family members — understanding the shared decision-making dynamic.
Millennials Rarely Buy “Forever Homes”
Only 11% of Millennials expect their first home to be their last. The majority view their starter home as a stepping stone, planning to move again once their needs evolve. Historically, homeowners stayed in their first home for around ten years. Millennials average closer to six.
This means establishing a strong relationship from day one is crucial — because satisfied Millennial buyers often return for their next home when the time is right.
How Ernest Homes Meets Millennial Buyer Needs
From customizable floor plans to modern, functional design, Ernest Homes is uniquely positioned to serve Millennial buyers. Our team focuses on exceptional customer care, transparent communication, and a smooth homebuying experience from the very first conversation through closing — and for years afterward.
Millennials are shaping the future of new construction, and we’re proud to build homes that match their values, lifestyles, and long-term goals.
