How millennials view home buying after COVID-19
The COVID-19 pandemic upended how most of us view just about every aspect of our lives. While the future of home building certainly looks bright, how do millennials—the largest group of home buyers on the market—view their home-buying futures? Let’s examine how millennials look at home buying currently, what they want and where their biggest obstacles to home ownership lie, and what builders can do to address their wants and needs.
What are some of the trends in millennial mindsets about home ownership?
Despite one of the most financially disruptive events since the Great Recession, a strange fact lingers. According to a survey from Zonda, the financial situation for many millennials either didn’t change or got better throughout the pandemic.
Between stimulus checks, student loan forbearance, and fewer opportunities to spend, millennials had more opportunities to save. This has contributed to what millennials call their most important goal: saving as much money as possible. Even more promising for home builders is millennials’ next-most-important goal: using those savings for a down payment on a home.
In the same Zonda survey, only 7% of millennials said that they never intended to buy a home. This creates a huge opportunity for builders to target millennials, most of whom intend to purchase a home. But what do they want, and what are their obstacles?
What do millennials want and what are the obstacles to getting it?
Before diving into the finer details, the top thing millennials want in a home is also their biggest obstacle to home ownership: affordability. While falling lumber prices may eventually contribute to lower-priced homes, affordability challenges will likely reign for quite some time.
However, one of the effects of the lack of affordability has been a migration to the suburbs. In addition, millennials have been more willing to move away from city centers to fulfill some of their other wants, such as the following:
- Someplace they can customize and make their own
- A chance to put down roots and be part of a community
- Somewhat ironically, the ability to pay less than renting
- Good ol’ fashioned space
These wants and migrations provide unique opportunities for builders to capitalize.
How can builders address these mindsets, wants, and obstacles?
The convergence of wanting to buy a home, space, community, and customization could make new construction even more enticing to millennials.
There are several things in particular that millennials expect in a home they purchase, in order of preference.
- A large kitchen
- A garage
- Yard space for hosting and relaxing
As a builder, you’re in a strong position to speak precisely to these wants in the homes you build. You may already be providing these aspects. You may just need ideas for how to best entice these buyers to consider new construction.
Another aspect to consider is the fact that nearly two-thirds of millennials regret something about buying a home. More specifically, a sizable subset of those millennials regrets buying a home due to maintenance costing too much. This can give you a true chance to differentiate your homes in ways that resonate with the largest home-buying market right now.
A structural warranty from 2-10 HBW can be another differentiator
Saving and security are important to millennials. A structural warranty from 2-10 Home Buyers Warranty (2-10 HBW) can help you go even farther to address those needs.
Did you know that 94% of prospective buyers said they’d be more likely to buy a new home from a builder that provided a structural warranty? How about that 4 out of 5 home buyers value an insurance-backed, third-party structural warranty?
When you cover your homes with a structural warranty from 2-10 HBW, you’re fulfilling those wants. You also establish a partnership with the industry leader in structural coverage. The average structural defect costs between $42,000 and $113,000 to address per claim. Transferring that liability from your books to ours can go a long way in helping you protect your bottom line and your buyers’ budgets against structural defects.
Millennials are the largest home-buying market out there. Addressing their needs can give you even more opportunities to grow. When you partner with 2-10 HBW, you can better protect your profit, promote your quality, create homeowner confidence, and plan for your future by controlling what’s behind you.
Learn how you can protect your business and add valuable selling points to your new builds with a 2-10 HBW structural warranty.
What Home Buyers Want and How Builders Can Provide It
Addressing the Challenges Millennial Home Buyers Face