SEATTLE, June 30, 2021 /PRNewswire/ -- A new Zillow
survey examining the housing preferences of and influences on
millennials and Gen Zers finds that about three in five1
plan to use money saved during the pandemic to put toward a down
payment on a home, showing that even in an unprecedented global
pandemic, homeownership still appears to be a priority and
aspiration among members of what is sometimes called the
"rent forever generation."
Many young adults were not fortunate enough to have worked in
industries that weathered the pandemic economy, and almost 3
million have moved back home since spring 2020. Those who remained
employed were able to save money they would have otherwise spent on
things like shopping, vacationing and child care costs. Of the more
than 1,200 young adults surveyed by Zillow, 83% reported saving
money in at least one spending category during the pandemic. When
asked about what they plan to do with the extra cash saved up
during that time, the majority (64%) plans to use it for everyday
living expenses, followed by 59% of those surveyed saying they plan
to use their savings for a down payment on a home.
"Young people, particularly women and BIPOC, were
disproportionately impacted by the pandemic and more likely to
suffer from job loss and housing insecurity," says Zillow
population scientist Manny Garcia.
"But during this difficult time, many young people say they saved
on transportation, shopping, dining out and child care. Some who
remained employed and saved enough for a down payment were able to
join in on the hot pandemic housing market."
Millennials are the largest generational group of homebuyers and
thus have an outsize impact on the market as a whole. As more
millennials age into their peak homebuying years, with Gen Z not
far behind, Zillow's survey of young adults and potential
first-time homebuyers asked what they value in their home-shopping
decisions, including where they want to live, what they are looking
for in a home and who or what influences them most when it comes to
choosing their first home.
Who and What Influences Millennials' and Gen Zers' Housing
Choices?
It's widely said that influencers and celebrities wield a great
deal of power over the purchasing decisions of millennials and Gen
Zers. This trend also applies to deciding to purchase a home.
Zillow research shows that 27% of young adults have been inspired
by influencers or celebrities to make certain housing decisions,
including buying a home. Men were more likely than women to report
that influencers or celebrities have inspired them to make certain
housing decisions. About one-third (32%) of men ages 18-41 reported
this, compared to just 21% of women.
Regarding their preferred home location, about 44% of young
adults said they either somewhat or completely preferred a home in
a remote area, while one-third (36%) said the same about a home in
a big city. One in five (20%) said they had no preference. And
despite the recent rise in opportunities for millions of Americans
to permanently work from home, most of the young adults surveyed
still consider living close to work (61%) and having a short
commute to work (63%) either very or extremely important when
considering where to purchase a home.
"Record low mortgage rates were the primary driver of our
homebuying decision. My spouse and I knew we might not see rates
this low again in our lifetime, and it allowed us to afford a
larger home without stretching our budget," said Haley Mills, Zillow communications coordinator
and recent millennial homebuyer. "We moved quickly out of fear of
missing out on a great home and overlooked details like the number
of bedrooms, interior paint color and unkempt landscaping. However,
those are the projects we're excited to do together to make the
house our own, with the help of influencers and friends to give us
all the best design trends and DIY tricks."
When it comes to the decision-making process for purchasing a
home, including the financial aspects and deciding on home
features, most millennials and Gen Zers reported discussing their
housing decisions with their parents (71%) and friends (61%). Half
discussed their housing decisions with their siblings, while not
quite a third (29%) discussed them with their grandparents. They
were least likely to report discussing their housing decisions with
their social media followers -- only 16% reported doing so.
Among millennials and Gen Zers who already own a home or have
tried to buy one, most reported that the opinion of a significant
other (60%) or parent (54%) influenced them not to buy a particular
home. A smaller number of those surveyed (38%) said the same about
a friend's opinion.
Zillow research forecasts that there will be 6.4 million
more households formed by 2025 as a result of a huge wave of
millennials now hitting their mid- to late 30s, aging into their
homebuying years. About a third (32%) of Gen Zers and millennials
reported that at least some of their friends have already purchased
a home.
"Millennial and Gen Z home consumers will not only drive housing
demand for years to come," says Zillow Home Trends Expert Amanda
Pendleton, "these tech-savvy generations that grew up with the
Internet are changing the way we buy and sell homes, demanding new
real estate technology that makes the process faster and easier,
and makes moving a digital-first experience."
About Zillow Group:
Zillow Group Inc. (NASDAQ: Z and ZG) is reimagining real estate
to make it easier to unlock life's next chapter.
As the most visited real estate website in the United States, Zillow® and its affiliates
offer customers an on-demand experience for selling, buying,
renting or financing with transparency and nearly seamless
end-to-end service. Zillow Offers® buys and sells homes directly in
dozens of markets across the country, allowing sellers control over
their timeline. Zillow Home Loans™, our affiliate lender, provides
our customers with an easy option to get preapproved and secure
financing for their next home purchase. Zillow recently launched
Zillow Homes Inc., a licensed brokerage entity, to streamline
Zillow Offers transactions.
Zillow Group's brands, affiliates and subsidiaries include
Zillow®, Zillow Offers®, Zillow Premier Agent®, Zillow Home Loans™,
Zillow Closing Services™, Zillow Homes Inc., Trulia®, Out East®,
StreetEasy® and HotPads®. Zillow Home Loans LLC is an Equal Housing
Lender, NMLS #10287 (www.nmlsconsumeraccess.org).
1 Referring to Gen Zers &
millennials, Americans born between 1980 and 2003 (ages
18-41). Plans to spend savings are among respondents that reported
saving in at least one category. Among all young adults
surveyed, half reported plans to use pandemic savings on a down
payment, while three in five (60%) of those who reported savings in
at least one category said they planned to use their savings on a
down payment.
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SOURCE Zillow