Editor’s note: This article was first published in August 2020 and reflects market conditions at that time.
Realtor.com’s 2020 housing forecast predicted that millennials would account for the largest share of home purchases in the United States. That wasn’t much of a surprise. Many millennials were entering their 30s, and most people buy their first home somewhere between 25 and 30.
The surprise was that they kept researching and buying homes right through the COVID-19 pandemic.
The pandemic changed what buyers wanted
According to Point2, the pandemic was actually behind much of the new interest. It pushed home shopping online, and it changed people’s priorities.
Before the lockdowns, a typical first-time buyer might have wanted a condo or a city apartment with granite countertops and the latest appliances. Afterward, the priority was space.
The typical home buyer in 2020
Point2 found that the typical buyer looking for a home in 2020 was a millennial woman. Months spent at home made space much more valuable. When you’re indoors all day, a small home feels smaller, and it’s natural to want more room.
These buyers also understood that more space costs more. Most were looking at homes priced between $200,000 and $300,000.
What this meant for investors and builders
Buyer preferences shape which properties sell. In 2020, that favored single-family homes with room to spread out, which was good news for investors renovating that kind of property and for builders putting up new ones. We looked at the builder’s side in Demand for Homes Makes 2020 – 2021 the Time for Sellers & Builders.
About Sachem Lending
Sachem Lending provides financing to real estate investors, including loans that are challenging or hard to fund elsewhere. Each borrower’s request is different, and we offer personal, responsive service to match. See our loan programs or call us today.
