Millennials’ Housing Preferences and Purchasing Decisions

Liaw, Ying Suan (2024) Millennials’ Housing Preferences and Purchasing Decisions. Final Year Project (Bachelor), Tunku Abdul Rahman University of Management and Technology.

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Abstract

Housing is a important component of life, providing people with essential human needs such as safety, warmth, and shelter. Housing is also a reflection of one’s living standard. People appear to have various home choices depending on their stage of life. However, homebuyers are frequently involved in selecting between housing needs and personal preferences that best suit their lifestyle. Millennials, also known as Generation Y, who are currently aged between 27 – 42, constitute the second-largest generation. They are projected to be a key force in the future of the real estate market. However, the homeownership of millennials is underperforming, which has drawn significant attention in recent years due to their impact on the real estate market. Henceforth, the purpose of this research is to investigate the housing preferences and purchasing decisions of millennials. Then, three primary objectives of this research are to identify the preferred types of housing by millennials, to study the factors influencing millennials’ housing preferences and purchasing decisions, and to examine the challenges faced by millennials in purchasing decisions. To achieve the research objectives, a combination of survey and literature review approach are employed. In addition, quantitative research methodology is designed in this research to measure different types of variables and to test the hypothesis relationship between variables. Moving on, the questionnaire survey form was distributed both physical and digitally to millennials from different demographic backgrounds. In total, 142 responses were collected and were analysed with SPSS software using descriptive analysis and Cronbach's Alpha analysis. Based on the data collected from 142 respondents, the study revealed that millennials predominantly favour landed types of housing, with semi-detached houses being the most preferred option, and cluster being the least preferred option. Additionally, when millennials were asked to choose between different types of high-rise housing, service residence was determined to be the most preferred option, whereas flats being the least preferred option. Furthermore, the research found that physical attributes had the greatest influence on millennials' housing preferences and purchasing decisions, whereas superstition beliefs have the least impact. Additionally, the research also indicated that the most significant challenge encountered by millennials in their purchasing decisions is job security, with Covid-19 pandemic being the least influential challenges. However, there are certain limitations in this research. The collected responses may not fully represent the entire population due to the small sample size, limited number of responses and inefficient time management. Therefore, future studies should address this by increasing the sample size and implementing effective time management measures during the survey process. Lastly, the findings of this research will contribute valuable insights to the real estate industry, academician and the government. Seeing that they can tailor housing options to better meet the needs of millennials groups.