Three out of five young adults who were fortunate enough to hold onto their jobs during the COVID-19 pandemic indicated that they plan to put some of the savings they accumulated over the past year and a half towards a downpayment on a house.
That’s according to a recent Zillow survey of more than 1,200 Zoomers and Millennials, debunking the myth that homeownership isn’t a priority among young people. Of those that remained employed, 83 percent said they saved money in at least one spending category, whether it be shopping, dining out or vacationing.
While 64 percent of respondents said they plan to spend the extra cash on living expenses, 59 percent reported that they will put it towards a downpayment. Millennials — the largest generation in American history — have entered their prime home buying years, with many having hit their mid-to-late 30s. Zillow estimates that 6.4 million more households will be formed by 2025, and demand is expected to remain high due to the country’s shortage of 3.8 million homes.
“Millennial and Gen Z home consumers will not only 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,” said Zillow Home Trends Expert Amanda Pendleton.
When asked about what motivated them to purchase a home, 27 percent of young adults said influencers or celebrities inspired them to make certain housing decisions. Men (32 percent) were more likely than women (21 percent) to report feeling influenced by a well-known personality.
The majority of young people (71 percent) discussed home buying plans with their parents, followed by friends (61 percent), siblings (50 percent) and grandparents (29 percent). Only 16 percent of respondents said they shared their housing decisions with their social media followers.
Among Zoomers and Millennials who own a home or have attempted to buy one, 60 percent felt that the opinion of their significant other shaped their decision not to buy a particular home. Additionally, 54 percent said a parent encouraged them to pass on a property.
Perhaps seeking additional living space and affordable prices, 44 percent of young adults said they preferred a home in a remote area, versus a third (36 percent) who would rather purchase a home in a big city. Twenty percent of respondents had no preference regarding their ideal location.
While many believe that remote work is here to say, 61 percent of those surveyed said they are still considering living close to work and 63 percent perceive a short commute as “very or extremely important” when choosing where to put down roots.