OCTOBER 6, 2021 | AHWATUKEE FOOTHILLS NEWS
Young buyers want to spend less on a home, Homie finds BY J. GRABER AFN Staff Writer
oday’s younger generations are willing to spend less overall and put less money down on a home than past generations, according to a recent survey by digital real estate agency Homie. Homie’s nationwide survey of 1,000 people aged 18-24 found Gen Zers are willing to spend $150,000 to $250,000 on a home. However, according to the National Association of Realtors, the median U.S. home price is over $360,000, meaning Gen Zers will need to spend well out of their comfort zone if they want to own a house. The survey also found 57 percent of Gen Z participants were willing to make a down-payment of only 3-5 percent while 53 percent of millennials are willing to put down less than 15 percent on a home and 27 percent of millennials favored a down-payment of less than 10
percent. Millennials are currently the most active generation of home buyers, accounting for 37 percent of all homebuyers. “These findings showcase that we are on the right track in appealing to the next generation of home buyers through our combination of technology and a streamlined experience,” Homie CEO Johnny Hanna said. “Our mission is to change the way homes are bought and sold to make home ownership accessible for not only Gen Z, but for all generations to come.” Founded in Salt Lake City, Utah, in 2015, Homie claims to have helped clients buy and sell over $4 billion in homes. It calls itself a “disruptive real estate technology company,” featuring homebuying and selling via a full-service app. Prospective buyers can look up houses according to location and/or price on the app while also getting information on things like the school district serving the area. The app even allows perspective buyers to sort houses according to a total monthly
payment – figuring in things like home owner association fees, homeowner’s insurance and the mortgage payment into the equation, to give one lump sum of what the owner can expect to pay every month. “That’s a very popular new feature to the app,” said Homie Senior Vice President Dan Richards. Homie’s is more of a self-service model for the younger generation, which is more comfortable using technology, and older generations that are more familiar with the home buying or selling process and don’t necessarily need hand-holding. By maximizing the use of technology, Homie says it cuts down on fees and commissions. Its newest offering, Homie Cash, gives prospective home buyers an edge over other bidders by backing a pre-approval for buyers with cash so they can make cash offers on a home. When faced with a choice between cash and a typical offer, sellers are three times
more likely to choose the cash offer, Richards said. Other findings from Homie’s survey include: • Gen Zers are willing to use technology to buy and sell homes. The majority of participants (67 percent) would consider using an online service or an app to buy a home compared to 39 percent of millennials. • A lifestyle change was the number one reason for wanting to buy a home. Roughly 46 percent of participants said a new job, a growing family or relocating were the top reasons for wanting to purchase a home • The overall company experience trumps everything for Gen Z. When searching for a real estate company to buy or sell with, 52 percent of participants said the overall experience from start to finish is the most important factor, followed by technology at 33 percent. Millennials set the trend as the generation to value experiences over things and Gen Z is following along this path. ■
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