Page 8 - Green Builder May-June 2020 Issue

EDITOR’S NOTE By Matt Power

The Inside Scoop Editor-in-Chief
Caption. Text

Sell now. Build later.

A perfect storm of pandemic anxiety, nomadic obstacles and new family

members could (still) spur a surge of online home buying among millennials.

ITH HOME MODEL TOURS and walkthroughs now
off limits, it’s not surprising that more people are
shopping online for new digs. What may surprise
you, however, is that millennials, who have been
W slower to embrace home ownership than their par-
ents, may have turned a corner. They’re ready to buy a home now, and
many of them don’t care if they have to do the whole thing online,
without ever stepping foot in a physical building.
So-called “sight unseen” home purchasing, however, became a
trend well before COVID-19 hit. As far back as 2017, Redfin found that
home purchases with no physical sites visit accounted for about 35
percent nationwide, with
45 percent of millennials
buying that way. Only 6
percent of baby boom-
ers made their purchase
without seeing the home
in person.
One of the big obstacles
to millennials purchas-
ing homes has been their
insistence on a “nomadic
lifestyle” unfettered by
the shackles of living
in a single location. As
parent of a globetrotting
kid, I know this sentiment well. But as international borders close,
AirBnb slashes its workforce, and backpacking in Indonesia becomes CREDIT: STATICNAT 1983/ISTOCK
impossible, owning a home starts to look a lot better than shacking up
in a family member’s basement every few months to refuel—or
placating a strict landlord.
The coronavirus may be the nudge that pushes millennials over Virtual quick draw. Millennials are more willing than ever to purchase a
the edge from looking to buying. Prices for housing at this writing new or existing home online without ever stepping foot in the real thing.
remain high, and wages have stagnated. One question builders may The only wild card: Will they have jobs?
have is whether they will buy if prices don’t drop. Zillow predicted with fewer luxuries but more access to culture.
on May 12 that housing sales will see a 60 percent decline this year, The real number to watch now is employment. If millennial jobs
but only a 3 percent price drop. survive what I would describe as the Russian-Roulette re-opening
Just before COVID-19 hit, realtor.com noted that millennials now of the U.S. economy—and that’s a big if—they’ll each be looking
represent the largest living generation, and their priorities are shift- aggressively for a home they can afford. And they’ll be ready to close
ing to “family friendly lifestyles and affording housing.” They were the deal online rapidly, sign the mortgage with an online notary, and
ready to buy homes in urban and suburban walkable neighborhoods move in without ever meeting the builder in person. GB

2 GREEN BUILDER May/June 2020 www.greenbuildermedia.com

5/26/20 1:27 PM
2 GB 0520 Editor's Note.indd 2 5/26/20 1:27 PM
2 GB 0520 Editor's Note.indd 2