SCOTTSDALE, Ariz. – The current global pandemic has shaped the way home buyers look at homes. With historically low-interest rates and the urge to sell, downsize and create uber functionality in a home, all and more contribute to the new era of homebuyers, millennials.
The millennial age group is recognized as those born roughly from 1981-1996. Now that age group of 24+ have reached the typical age of a first-time homeowner. This generation has been observed as a homebody generation, those who engage the most on social matters and those who are some of the highest internet and social media users. With 20 and 30-year-olds entering the housing market, their wants and needs in a home have shifted from previous years, especially given the COVID-19 disease and the lifestyle changes it has put on people.
According to Forbes’ article by Charles Taylor titled, “The Growing Importance Of The Home For Young Consumers,” he elaborated on the significant features millennial and Gen Z home buyers look for and how those wants will change how agents search for their perfect home.
“Both millennials and Gen-Z (widely regarded as the most stressed-out generation in history) are seeing the home as a refuge from the outside world, as many have felt stressed by issues such as climate change, the 2008 recession, student debt, and now COVID-19,” Taylor stated.
Whether it’s having a home office, outdoor entertainment areas, fully equipped kitchens, or additional rooms for their children’s remote learning, these home features could be some of the must-have items younger buyers are looking for.
When looking at the way COVID-19 has shaped the industry of real estate, the increased amount of millennial homebuyers may come as a surprise to some given the age group has a current unemployment rate of about 9.8 percent, compared to this time last year at 4.6 percent according to the U.S Bureau of Statistics. Although millennials are looking for homes, the generation is succumbing to unemployment on the rise and student loans with little to no substantial income savings. Could this lead to more millennials applying for higher home loans? Most likely.
Regardless, agents working with millennial-aged home buyers are challenged with finding houses that are updated, have additional space, outdoor entertainment and more, all in a first-time buyer price range. There’s no telling where the market will shift in a post-COVID-19 world, but millennials and agents can keep their eye on the trends to prepare for changes in the way they look to buy homes.
“Once the pandemic ends, this desire should produce good times for the housing market. Assuming a reasonably healthy economy and no dramatic changes in federal tax code, it remains likely that once the crisis passes that there will be a boom in millennial wealth, leading to an even better housing market,” Taylor said.