The current COVID-19 (coronavirus) pandemic has undoubtedly presented surprises to the new home industry including historically low interest rates and high demand despite economic uncertainty. In fact, according to an article posted by Builder Online, this high demand for homes could become even higher because of current renters now looking to buy a home of their own.
Back in April, America at Home Study conducted research of current renters between the ages of 25- to 74-years-old with household incomes of $50,000 or more. These renters were asked whether the coronavirus pandemic has made them more or less likely to want to own versus rent a home, to which a surprising 46% responded that they would prefer to own. Even more interesting is that despite the financial stress and strain of the current pandemic, most of that percentage consisted of Millennial and Generation Z renters.
So, what does this mean for the new home industry and the buying market? This surplus of Millennial homebuyers is the new silver lining. It provides additional demand for building new homes and the ability to further understand a new wave of homebuyers that have previously strayed away from the idea of homeownership.
It is not surprising that renters are now looking to buy, especially after sheltering in place became the norm. Throughout the pandemic, access to larger home layouts and outdoor spaces such as porches, patios and backyards became a lifeline for many. While these desirable features are often easily available to homeowners, they are not always a luxury for those who rent.
The cost of land in certain markets often minimizes yard sizes in order to lower the price of the home. Luckily, this is a trade-off that many are willing to take in exchange for having some form of an outdoor living space and less lawn maintenance. Other trade-offs new buyers are willing to take in order to own a home include living in less expensive areas with fewer features and upgrades.
At The Providence Group, homebuyers don’t have to compromise location or features. We look forward to this potential demand and are excited to continue building quality homes to suit the needs of this new group of homebuyers. Our team is committed to seeking out new opportunities to create exceptional lifestyles in great intown and Atlanta area locations with price ranges to accommodate a variety of budgets, allowing more people to enjoy the American dream in their own home and Make Space for Life.
For more information regarding new homes throughout Atlanta and the metro area from The Providence Group, visit www.TheProvidenceGroup.com, or call or text the New Home Navigator at 678-472-0411 to schedule a private showing.
Click here to read the full Builder Online article.