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Friday, June 18, 2021

Business Transformation

Buy a home online: Millennials are willing to do so, leading a shift toward a digital real estate transaction

People usually buy online food, clothes, shoes or items for household use. It is true that from the beginning of the pandemic the online purchases have risen. Have you ever thought of buying a home online? A recent survey by Zillow concluded that more millennials want digital home shopping tools and are comfortable making big purchases online, leading a shift toward a digital-first real estate transaction.

More specifically, 59% of the millennials who were interviewed for the survey answered that they would be at least somewhat confident making an offer on a home they toured virtually but not in person. At the same time, 39% of the millennials asked said that they would feel comfortable buying a home online. Also, more than 80% of millennials would like to view 3D virtual tours and digital floor plans when shopping for a home. As the survey indicates, millennials represent the largest generation of home buyers, and will drive housing trends and demand for years to come.

It is impressive to see that the new generations would dare to buy their first home with the help of digital tools and many are comfortable purchasing their biggest financial asset online. Millennials are very good users of new technologies and as it seems they are willing to make use of digital tools even for buying a home. As it was written above, the majority of millennials would like to view 3D virtual tours when shopping for a home while 85% would like to view digital floor plans for a home. Furthermore, 78% of the millennials asked would like to use self-tour technology to unlock a vacant for-sale home with their phone and tour it on their own time. Millennials who are approaching the typical age of a first-time homebuyer, in other words millennials who are about 34 years old are a large group showing the future trend in housing demand and the future way of selling and buying homes. According to Zillow survey, there will be 6.4 million more households formed by 2025 as a result of the sheer number of millennials hitting their mid-to-late 30s, driving housing demand for years to come.

A large number of millennials (70%), also answered at the survey that they would be comfortable buying furniture, appliances, televisions and jewelry online. A smaller number (45%) said that they would feel comfortable purchasing a car online.

It is worth mentioning how willing are Baby Boomers, Gen Zers and Gen Xers of real estate technology. Only 7% of Baby Boomers surveyed said that they feel comfortable buying a home online. Also, 36% of Gen Zers and 19% of Gen Xers are willing to do so. As far as confidence is concerned when making an offer after seeing a 360/virtual tour but not in person, 77% of Baby Boomers answered that they don’t feel like doing so, while 58% of Gen Zers said that they feel very confident for such a movement. Also, 61% of Gen Xers are not confident at all or not very confident of making an offer after seeing a 360/virtual tour but not in person.

Are Baby Boomers, Gen Zers and Gen Xers willing to use tech tools while home shopping? The answer is yes. The majority of Baby Boomers are willing to use a 3D virtual tour (75%) while 77% of them would not reject viewing a digital floor plan. The majority of Gen Zers (79%) would like to have a 3D virtual tour while 76% of them would accept viewing a digital floor plan. Lastly, 81% of Gen Xers would like to have a 3D virtual tour and view a digital floor plan.

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Maria Gourtsilidou
Maria Gourtsilidou is Senior Editor of Research and Data Analytics at the CEOWORLD magazine. She is responsible for driving thought leadership, using data analytics to showcase the company’s products and services, and fostering knowledge sharing between CEOWORLD magazine and client organizations. She studied Public Administration (Economics Of The Public Sector) in Greece and holds a Bachelor’s in Public Administration from the Panteion University of Political & Social Studies. Follow Maria Gourtsilidou on Twitter. Write at maria-gourtsilidou@ceoworld.biz.