One Third of Millennials Now Keen To Purchase Properties Amid Impacts of COVID
After tackling issues like on-site protection and a new age of remote working, millennials are now more inclined to buy houses.
Almost 30% of them report that the COVID-19 pandemic has caused them to start looking for accommodation earlier than originally planned, a new survey by Clever shows. Their readiness comes almost a year after the crisis resulted in travel restrictions, social distancing, bans, and other major adjustments.
And since the coronavirus is still going on, this generation knows the apartments they want. Millennials crave to buy affordable, spacious, and comfortable homes. And they crave these conveniences even when they have to buy a fixer-upper (71%) and buy a home without seeing it (around 80%). Of course, buying an invisible visor can be risky for a number of reasons, including the possibility of incurring high repair costs.
For its Millennial Home Buyer Report 2021, Clever asked 1,000 people who wanted to buy a house in the next year about their hopes and fears in January 2021. Respondents were also asked what concessions they would like to make in order to become a homeowner. Clever is a real estate education platform for home buyers, sellers and investors.
What challenges might millennials face in moving towards home ownership?
One could be appreciating apartments. Clever reported that real estate prices rose 8.4% last year and are expected to rise another 10.5% this year. On top of that, the spike comes as millennials face growing demand and dwindling housing stock in a highly competitive market.
Another hurdle could be finances. Clever states that 57% of Millennials are saving more than $ 10,000, up 36% year over year. However, two thirds plan to load less than 20% of their homes.
The main steps respondents take to cover their down payment include developing personal savings (67%), investment accounts such as retirement plans or stocks (24%) and emergency funds (17%).
Still, historically low interest rates are a compelling factor in why millennials are looking for a home. Around 40% intend to take such a step, around four times more than last year. And they want bigger houses with an area of around 2,400 square meters – an increase of 41% over the previous year.
At the same time, student loan debt could hinder home ownership for millennials. About 77% are now paying off student loans, and 31% fear that debt could block their ability to buy a home.
However, these millennials could get help from President Joe Biden. He has ordered the Ministry of Education to suspend payments on federal student loans until September 30, Clever reported. The loan grace period has been in place since March 2020 and allows many millennials to keep money for a home instead of paying their loans.
Black Enterprise reported that MP Alexandria Ocasio-Cortez is continuing her efforts to get Biden to cancel up to $ 50,000 in student loan debt. Other progressive Democrats have taken a similar stance on this issue.