Zillow: Young adults saved money to buy a home during the pandemic
A new generation of potential homebuyers are eager to get out of the renting rut. A Zillow survey shows they’re hoping money saved during the pandemic will make it possible.
In joining the already hot housing market, those of the Gen-Z and Millennial generations are about to make the competition grow hotter.
In a survey of more than 1,200 young adults, many are planning to take the home buying plunge with some extra cash in hand.
"Around 60% of Millennials and Gen-Z folks are saying that they were able to save during the pandemic, they would use that towards a down payment," said Nicole Bachaud from Zillow.
Bachaud said many young adults were able to stay employed during the pandemic and spent less.
"There were no vacations and a lot of shopping was delayed and things like childcare weren’t really expenses that people had anymore," said Bachaud.
Affordability is still a challenge, but remote work and job flexibility gives many young adults an advantage.
"Where they are able to move around and find a place that better fits their budget," said Bachaud.
In the survey, 44% said they either somewhat or completely preferred a home in a remote area while 36% said the same about a home in a big city. One-in-five had no preference.
About 25% of young adults say social media influencers and celebrities impacted their housing decisions. Seventy-one percent discuss those decisions with their parents while 61% talk it over with friends.
Younger potential homebuyers are also finding that conventional loans will allow a small 3 to 5% down payment, which may help them obtain their dream of owning a home.
"They are eager to make it happen, said Bachaud. "This sense of urgency to get into a home now because prices are just going to continue to increase in the future."
If you’re considering homeownership for the first time, Zillow experts advise you to be prepared financially by getting pre-approved and working closely with trusted real estate agents. Tools like 3D home listings and virtual tours are also a good way to keep yourself ahead of the game.
https://www.zillow.com/research/millennial-savings-homeownership-29709/
