Every month since February 2015, the number of homes on the market (nationally) dipped lower than the year prior. Tight inventory may create stiff competition among home buyers while giving sellers definite leverage, but that doesn’t mean house hunters are completely forgoing their must-haves on the trek to closing.

According to the Zillow Group Consumer Housing Trends Report 2017 released in late October, today’s median home buyer is 40-years-old, married or cohabitating and earning $87,500 per year. The typical home purchased is a 3-bedroom, 2.5-bathroom for $200,000. Millennials, defined by ages 18 to 37, cover the largest segment (42 percent) of homeowners who’ve purchased in the last 12 months. Forty-three percent of all Millennial buyers gravitate toward urban areas, Chicago included.

Given their dominance in the market, learning Millennials’ must-haves should be a priority for sellers everywhere. Here are just a few of the essentials today’s buyers seek in their next place:

Kitchens are the heart of the home purchase

Per usual, a large portion of all buyers today weigh kitchen style and functionality seriously during their house hunt. Energy efficiency is another want, while preferred finishes, like the flooring, countertops and appliances, rank third most important. While Zillow’s recent report didn’t divulge the home design trends that sway young buyers the most, a previous listing keyword analysis revealed which home improvements tend to carry the most weight at resale.

Earlier this year, Zillow found that light blue to soft gray-blue kitchens fetch an average premium of $1,809. Homes for sale with the words “subway tile” in the description sell for 7 percent above the expected value and 63 days faster. Farmhouse sinks also correlated with homes selling for 8 percent above their expected value and 58 days sooner than anticipated. Another popular home feature, quartz countertops helped homes sell for 6 percent above the expected value and 50 days faster. 

Millennials want to stay cool

Rather than focus on outdoor space, buyers see air conditioning as one of the four core home features. Sixty-two percent say it’s a requirement while less than half truly need private outdoor spaces, such as decks, patios and yards, to compensate. This might not be a problem among home sellers in Chicago and beyond – 65 percent of all U.S. homes have central A/C already and 27 percent have individual units servicing their residence alone.

Location means better parking, accessibility

Over one-third of buyers need ample parking in their next place. Perhaps that’s why so many refuse to stray outside of their predesignated neighborhoods, some of whom likely consider population density and traffic. Eighty percent of buyers say preferred neighborhood is a requirement or at least a preferred feature. Most highlight proximity to family and friends, shopping and leisure activities as a deciding factor when it comes to location. For urban home buyers, 33 percent require their new address be close to work and 31 percent want to be near public transportation. What’s more, over a third of Generation X and Millennial buyers need to be in their preferred school district. Safety is a general requirement for all buyers, regardless of generation or geographic setting (urban, suburban and rural).

New construction is gaining steam

Over half of all buyers consider new development properties, thanks to their sought-after locations, features and feeling of freshness. The majority of buyers most likely to consider new construction condos, townhouses or single-family homes earn $100,000 or more annually. Meanwhile, distressed properties – foreclosures, short sales and auctions – remain a popular option for those on a budget. Over a quarter consider lots or land with no existing structure. As assumed, these buyers tend to spend more on repairs after closing, often surpassing the amount saved on the list price. Although fixer-upper homes sell for around 8 percent less than market value (or $11,000 of the median sales price), the savings aren’t usually enough to cover major cosmetic or structural overhauls.

How they hunt

Outside of home features, young buyers also differ in their home purchase process. They spend the least amount of time searching for home at 3.9 months compared to the 4.3-month average across age groups. And, young buyers are the most likely to consider renting instead, presumably due to frustration with the lack of options in the starter home segment.

Additionally, Millennials tend to go over their budget in today’s highly competitive market. Over the last year, young buyers paid $514 billion on homes total. More than half (53 percent) submit multiple offers and 80 percent obtain mortgages to fulfill their homeownership dreams.