Table of Contents
Executive Summary
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- Top takeaways
- A quarter of consumers find saving for a down payment difficult
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- Figure 1: Opinion on saving for a down payment, by generation, 2021
- The agent and customer relationship continues to drive home purchase
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- Figure 2: Mortgage lender shopping, 2021
- Explore emerging technologies to expedite the home purchase process
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- Figure 3: Home searching online, 2021
- Market overview
- Impact of COVID-19 on home purchasing
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- Figure 4: Short-, medium- and long-term impact of COVID-19 on home purchasing, 2021
- Opportunities and challenges
- Short term
- Recovery
The Market – Key Takeaways
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- Home ownership passes 65% for ten-year high
- Home prices soar amid perfect market storm of supply and demand
- Market demand shifts away from cities
Market Factors
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- Home ownership rate increases to highest in ten years
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- Figure 5: Total US home ownership rate, 2010-2020
- Mortgage rates near all-time lows
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- Figure 6: Average 30 year mortgage rate, 2010-2021
- Home prices soar as low rates and remote work spur demand
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- Figure 7: Median sales price of houses sold for the US, dollars, quarterly, not seasonally adjusted, 2011-2021
- Housing inventory rebounding from low
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- Figure 8: Monthly supply of houses in the US, months' supply, monthly, seasonally adjusted, 2010-2021
- Work from home shifts market demand away from cities
Companies and Brands – Key Takeaways
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- 3D and VR tours make in-person tours less important
- Divvy homes to bring rent to own to masses
- Zillow Offers begins “institutionalizing” home buying
Competitive Strategies
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- Sotheby’s & Redfin’s 3D and VR tours foreshadow future digital buying process
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- Figure 9: Redfin ad, 2020
- Divvy homes to bring rent to own to masses
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- Figure 10: Divvy Homes YouTube ad, 2020
- Zillow Offers removes the hassle of selling homes
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- Figure 11: Zillow Offers ad, 2021
The Consumer – Key Takeaways
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- Consumers strive for “American Dream” of home ownership
- Active market for buyers and sellers
- Locality is key in home purchasing process
- Online tools adding to in-person buying process
- Many unhappy with home, yet hesitant to move
Home Purchasing Process
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- Nearly two thirds of US consumers own their own home
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- Figure 12: Home purchasing involvement, 2021
- Home purchasing decisions often shared
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- Figure 13: Home purchasing involvement, 2021
- Men more likely to decide for themselves
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- Figure 14: Home purchasing involvement, by gender, 2021
- Millennials making decisions on own
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- Figure 15: Home purchasing involvement, by generation, 2021
- More optimistic consumers decide for themselves
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- Figure 16: Home purchasing involvement, by financial outlook, 2021
First-time Home Purchase
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- Half of home buyers are first-time purchasers
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- Figure 17: Saturday Night Live “Zillow” skit
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- Figure 18: First-time home purchase, 2021
- Nearly half of Gen Xers were first-time buyers
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- Figure 19: First-time home purchase, by generation, 2021
- City dwellers more likely to be first-time buyers
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- Figure 20: First-time home purchase, by area of residence, 2021
- Nearly 70% of parents are first-time homebuyers
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- Figure 21: First-time home purchase, by parental status, 2021
Types of Homes Considered
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- Three quarters considered previously owned homes
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- Figure 22: Types of homes considered, 2021
- New construction most appealing to Gen Z
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- Figure 23: Types of homes considered, by generation, 2021
- Fixer-uppers may be attractive to those with less income
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- Figure 24: Types of homes considered, by household income, 2021
- New construction popular in cities
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- Figure 25: Types of homes considered, by area of residence, 2021
- Opportunity to reach renters of single-family homes
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- Figure 26: Homes considered for future purchase, by current residence, 2021
Mortgage Lending
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- Referrals drive mortgage lending
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- Figure 27: Mortgage lender shopping, 2021
- Hints of online success for younger audience
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- Figure 28: Mortgage lender shopping, by generation, 2021
Likelihood of Home Purchase
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- One third of consumers likely to buy or sell home
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- Figure 29: Likelihood of home purchase, 2021
- Men more likely to buy soon
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- Figure 30: Likelihood of home purchase, by gender, 2021
- Millennials very likely to buy in next year
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- Figure 31: Likelihood of home purchase, by generation, 2021
- Parents looking to buy soon
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- Figure 32: Likelihood of home purchase, by parental status, 2021
- Relocation key driver for home purchase
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- Figure 33: Likelihood of home purchase, by major life events in next year, 2021
Length of Home Ownership
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- Consumers get comfortable in homes as they age
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- Figure 34: Length of home ownership, by generation, 2021
- Expecting parents may be hungry for change
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- Figure 35: Length of home ownership, by parental status, 2021
Area of Purchase
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- Majority of buyers stay in similar area
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- Figure 36: Area of purchase, 2021
- Moving to suburbs attracts some Gen Zers
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- Figure 37: Area of purchase, by generation, 2021
Home Searching Online
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- Most believe it’s important to visit in person
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- Figure 38: Home searching online, 2021
- Millennials doing most searching online
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- Figure 39: Home searching online, by generation, 2021
Home Purchasing Attitudes
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- Just half of consumers happy with current home
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- Figure 40: Home purchasing attitudes, 2021
- Cultural importance of homes lessening with young generations
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- Figure 41: Home purchasing attitudes, by generation, 2021
- Less-wealthy consumers open to homes needing repair
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- Figure 42: Home purchasing attitudes, by household income, 2021
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
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