Nearly 40% of Millennials are Comfortable Buying a Home Online

Rhea-AI Summary

Zillow's recent survey reveals that 39% of millennials are comfortable purchasing a home online, with 59% open to making offers after virtual tours. The research indicates a significant shift in shopping behavior among millennials, who also prefer digital tools, including 82% wanting 3D virtual tours and 85% liking digital floor plans. With 6.4 million new households expected by 2025, demand for housing is projected to remain strong. Technology adoption for home buying is expected to outlast the pandemic, offering ease and efficiency in transactions.

Positive

• 39% of millennials are comfortable buying a home online.
• 59% would make offers after virtual tours.
• 70% comfortable buying major items online.
• 6.4 million new households forecasted by 2025.

Negative

• None.

SEATTLE, March 10, 2021 /PRNewswire/ -- Tech-savvy millennials are not only driving the Zillow surfing trend, they could change the way we shop for and buy homes. A new Zillow survey¹ finds the largest generation of first-time home buyers overwhelmingly want digital tools available during the home shopping process, and many are comfortable purchasing their biggest financial asset online. 

Nearly 40% of millennials (39%) said they would be comfortable buying a home online, and significantly more (59%) said they would be at least somewhat comfortable making an offer on a home after viewing a virtual tour but not touring it in person. 

It's not only homes. Zillow research finds millennials are more likely than other generations to say they would be comfortable making many of life's major purchases online. A large majority -- at least 70% -- said they would be comfortable buying furniture, appliances, televisions and jewelry online. Nearly half (45%) would be comfortable purchasing a car online.

Born between 1981 and 1996, this generation reached adulthood in the digital age, with the ability and expectation that they could make transactions happen with the click of a button; for many, that expectation includes real estate. Millennials are more likely than other generations to say they would like to use tech tools while home shopping. More than 80% of millennials would like to view 3D virtual tours (82%) and digital floor plans (85%), and nearly 80% (78%) would like to use self-tour technology to unlock a vacant for-sale home with their phone and tour it on their own time. 

A huge wave of millennials -- the largest generational group in the country -- is now aging into their home buying years and approaching the typical age of a first-time homebuyer: 34.  Zillow research forecasts 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.

"It's clear that strong demand from the next generation of buyers will keep real estate technology in place long after the pandemic is over," says Zillow Senior Vice President of Product Matt Daimler. "Digital tools rapidly adopted during the pandemic not only make home shopping safer, they make it faster and easier. Technology like Zillow's 3D home virtual tours and interactive floor plans are allowing shoppers to teleport themselves from room to room of a for-sale home from their phone or tablet. Many transactions can now close remotely, too, saving time and hassle."  

Time-saving digital tools are allowing millennials, who are often first-time buyers, to compete in a lightning-fast housing market. Homes nationwide are going under contract in a median of 18 days, 28 days faster than a year ago. The pace is even quicker for listings with a Zillow 3D Home tour, which sold, on average, 10% faster, as of May 2020.² Virtual tours and interactive floor plans help home shoppers make faster decisions by enabling them to winnow down their options from their couch. Homes on Zillow with a 3D Home tour were saved by buyers 32% more than homes without, and got, on average, 29% more views than listings without.³

While millennials are currently the largest adopters of this real estate technology, Gen Z is close behind. More than one in three (36%) zoomers said they would be comfortable buying a home online, compared to 7% of baby boomers and 19% of Gen X. This data signals the coming sea change in how people will likely shop for and buy homes in the not-so-distant post-pandemic future.

	Total	Gen Z (18 - 26)	Millennial (27-41)	Gen X (42-56)	Baby Boomer & Silent Generation (57+)
Comfortable buying a home online	23%	36%	39%	19%	7%
Confidence making an offer after seeing a 360/virtual tour but not in person
Somewhat/very/extremely confident	42%	58%	59%	39%	23%
Not at all/not very confident	58%	42%	41%	61%	77%
Would like to use each tech tool while home shopping
3D virtual tour	79%	79%	82%	81%	75%
View digital floor plan	79%	76%	85%	81%	77%
Unlock with phone and tour on own time	68%	73%	78%	75%	54%

About Zillow Group:

Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life's next chapter.

As the most-visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and nearly seamless end-to-end service. Zillow Offers® buys and sells homes directly in dozens of markets across the country, allowing sellers control over their timeline. Zillow Home Loans™, our affiliate lender, provides our customers with an easy option to get pre-approved and secure financing for their next home purchase. Zillow recently launched Zillow Homes, Inc., a licensed brokerage entity, to streamline Zillow Offers transactions. 

Zillow Group's brands, affiliates and subsidiaries include Zillow®; Zillow Offers®; Zillow Premier Agent®; Zillow Home Loans™; Zillow Closing Services™; Zillow Homes, Inc.; Trulia®; Out East®; StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).

¹ Zillow Group Population Science collected a nationally representative sample of more than 2,000 Americans. Fielded between February 11 and February 19, 2021, the survey asked participants questions about their comfort and likelihood to adopt new technologies in home shopping. The survey also  tested participants' knowledge of credit scores. To achieve national representativeness, quotas for age, education, sex, region, race, income, and marital status limited oversampling of any given demographic group. In addition to quotas, Zillow used statistical raking to weight the sample to the US Census Bureau American Community Survey 2019 sample of adults
² Compared to listings without a Zillow 3D Home tour. Based on data collected Dec 2019 - May 2020.
³ Based on Jul 2020 – Dec 2020 data.

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SOURCE Zillow

FAQ

What percentage of millennials are comfortable buying a home online?

According to Zillow's survey, 39% of millennials are comfortable purchasing a home online.

How many millennials are willing to make offers after virtual tours?

The survey found that 59% of millennials would consider making offers on homes after viewing virtual tours.

What is the projected number of new households by 2025?

Zillow forecasts that 6.4 million new households will be formed by 2025.

What digital tools do millennials want when shopping for homes?

Over 80% of millennials prefer using tech tools like 3D virtual tours and digital floor plans when home shopping.