Generation Y the “New” New Home Buyer of New Homes
As the real estate market recovers from a financial disaster, a new generation of home buyers has emerged, or we should say matured. Interestingly, as the housing market turns to more energy-efficient – “everything” – so does this new demographic of interested purchaser. Not only is the home building industry focusing on Green Building, but it is also financially beneficial both to the builder and the home buyer because of government programs which offer rebates and incentives for using energy efficient, “green” appliances, products, and systems.
For instance, solar energy has been a strongly emerging market, which is undeniably profitable both for solar energy companies as well as people who install these systems in their new or existing homes. The monthly utility cost is cut by as much as 85% because of the use of a solar system vs. using a traditional electrical utility.
ENERGY STAR-rated appliances, insulated windows, specialty blown or foam wall insulation, insulated doors, and even water proofing features (great for hurricane flooding protection) are all “must haves” of the Generation Y home buyer population, according to the National Association of Home Builders. Before, builders considered these types of luxuries to be upgrades, not standards. However, as affordability for these products and government backing for the use of these products have increased, these features, for some builders in the Greater New Orleans area, have become standards.
It’s almost a natural progression of supply meets demand when it comes to builders building new homes which are the exact product that new home buyers, aged 24 – 35, are looking for. Another factor that these buyers take into consideration is the cost of buying/maintaining a home. New homes require less money on an annual basis to take care of vs. previously owned or existing homes. In fact, an NAHB study found that homes built before 1960 have average maintenance costs of $564 a year, while a home built after 2008 averages $241.
The train of thought for Generation Y buyers is that they are not looking to save a lot of money on the front end of the new home purchase, but they would like the monthly costs, once they buy the home, to be as low as possible. With interest rates remaining historically low, the emergence of the standard use of energy-efficient features by builders, and the benefit of buying a new home vs. a used one, Generation Y home buyers have found their perfect solution by building a new home with top quality builders in the Greater New Orleans area.
Most of the builders at The Parks of Plaquemines design and build homes with tons of energy efficient features. This new home community is located a little more than 10 miles from the Central Business District (CBD) in New Orleans, so home buyers enjoy an easy commute, city convenience, more security and safety from living outside city limits, and less monthly and annual cost because the cost for taxes and utilities are based on Plaquemines Parish regulations instead of the City of New Orleans. To find a home just right for you, Contact Us at 504-364-2350 or E-mail Info@TheParksLifestyle.com.
