Why Millennial Homeowners are Buying Home Warranties
Since 2014, millennials have been the largest group of home buyers. These individuals are now between the ages of 22 and 40, and continue to represent solid buying power in the residential real estate market. They’re also actively growing their careers and paying off student loan debts. Changes in an economy rebounding after the COVID-19 pandemic have made it possible for more millennials to buy homes at historically low interest rates, often using savings collected during pandemic sheltering.
Millennials are also good with their money. Investopedia reports on the money habits of millennials, and serves up the following takeaways:
- Millennials have a different attitude toward money and investing than baby boomers.
- Millennials are likely to have an investment philosophy that not only enriches them as individuals, but the world around them.
As smart millennials are making wise financial decisions, the ones that can buy homes are also buying home warranties. There are a few key reasons why.
1. Millennials May Not Have Much Cash on Hand
When it comes to the working capital of homeownership, millennials may be a little cash-strapped. Saving to own a home is a big deal, and a hefty downpayment often empties savings accounts. This means there is little margin left over to take care of an expensive home repair. The coverage from Elite Home Warranty home warranty may offer a cushion, protecting these homeowners from the potential disaster of a major breakdown.
2. Millennials May Not Want to Fix Things Themselves
In a digital-first age, millennials are the first generation of digital natives. This also means that more of them are employed in professions that are more computer-centric than handy. Without trade knowledge or skills, millennials are already more likely to hire someone else to do repairs. With a home warranty, this is made more affordable, and ensures a backup plan if something in the home breaks down.
3. Millennials Want Efficient Solutions
Whether first-time homeowners or not, millennials want to spend their time in smart ways. This includes home maintenance tasks, and vetting home repair service providers. Because they tend to be a transient generation, millennials are on the move, often relocating several times throughout the course of their careers. Getting to know a network of service providers in every location may not be the best use of time, and is a task better left to a home warranty company, who will vet candidates in advance and have a reliable group of people that homeowners can call.
4. Millennials Want Predictable Costs
Whether a budget is strictly limited or not, the predictability of paying for a home warranty is far greater than living without one. If a major appliance or system breaks down, the cost can be exorbitant. If this is unexpected, it can be disruptive, if not catastrophic. A monthly or annual fee for a home warranty is far preferable, keeping home expenditures on a steady rhythm year-round.
5. Millennials Want Fewer Responsibilities
The whole spectrum of millennials are in early to mid career, early parenthood and other busy dynamics that make the idea of “more” responsibilities a nonstarter. Owning a home is a huge goal, but the accompanying maintenance, tasks and risks associated with it are not. Home warranties take a huge chunk off of the plate of the homeowner. When the items in a home are covered, help is only a call, email or text away. This makes it easy for homeowners to relegate responsibility, entrusting the big things to a company that will take care of them.
6. Millennials Want Move-In Ready Homes
Due in part to busyness, and in part to a myriad of other factors, millennials favor move-in ready homes. However, brand new construction homes may not fit their price point. When homes are older, they have the downside of also coming with older appliances or home systems. A home warranty is the best solution for this issue, alleviating the concern that something is likely to break down, and providing peace of mind in case it does. This dynamic makes even older, more affordable homes, “move-in ready.”
Home Warranties Meet the Needs of Millennial Homeowners
Home warranties are a good fit for the average millennial homeowner. These plans mitigate risk and secure peace of mind. However, not all home warranty companies are created equally or operate at a high standard. Elite Home Warranty is a valued provider for millennial homeowners, because they operate with distinctly customer-centric practices. Rather than the bottom line, homeowners come first. They run a digital-first system that makes it easy to file claims, pay premiums and get in touch with a real person to get help right away.