Three in every five millennials plan to use the money they saved during the pandemic towards a payment on their first home, according a US study.
Even in an unprecedented global pandemic, homeownership still appears to be a priority and aspiration for millennials, also known as the ‘rent forever generation’, the new Zillow study found.
In the United States (US), almost three million young adults moved back to their family home since spring 2020, Zillow notes.
Those who remained employed over this time were able to save money they would have otherwise spent on rent or travel.
Of the 1200 young adults surveyed by Zillow, 83 per cent reported saving in at least one major spending category during the pandemic.
When deciding what to do with that extra cash, 64 per cent planned to use it for everyday living expenses and 59 per cent planned to use their savings for a down payment on a home.
Zillow US population scientist Manny Garcia suggested there was a silver lining for the young people who were “disproportionately impacted by the pandemic”.
“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,” Mr Garcia said.
It’s widely suggested that influencers wield a great deal of power over the purchasing decisions of millennials. This trend also applies to deciding to purchase a home.
Zillow research shows that 27 per cent of young American 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 per cent) of men aged 18-41 reported this, compared to just 21 per cent of women.
Regarding their preferred home location, about 44 per cent of young adults said they either somewhat or completely preferred a home in a remote area, while one-third (36 per cent) said the same about a home in a big city. One in five (20 per cent) said they had no preference.
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 per cent) and having a short commute to work (63 per cent) either very or extremely important when considering where to purchase a home.
When it comes to the decision-making process for purchasing a home, including the financial aspects and deciding on home features, most millennials reported discussing their housing decisions with their parents (71 per cent) and friends (61 per cent).
Among American millennials who already own a home or have tried to buy one, most reported that the opinion of a significant other (60 per cent) or parent (54 per cent) influenced them not to buy a particular home. A smaller number of those surveyed (38 per cent) said the same about a friend’s opinion.
Zillow home trends expert Amanda Pendleton said millennials will drive housing demand for years to come.
“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,” she said.
