The Pandemic Catalyzed Millennial Homeownership

The pandemic has created both short-term and long-term demand in the for-sale housing market. In the short-term, low interest rates have helped to spur home buying activity. However, the pandemic also encouraged millennial adoption of homeownership, a trend that will have a lasting impact on the for-sale home market.

“Our industry is currently thriving as the desire for new homes continues to grow. While the historically low interest rate environment is clearly fueling a portion of the housing demand, we believe there are demographic shifts and lifestyle changes occurring in this country that will have a positive, long-term impact on our industry,” Doug Bauer, CEO of Tri Pointe Homes, tells GlobeSt.com. “Millennials are increasingly embracing the notion of home ownership, while Americans of all ages have placed a greater emphasis on home due to the pandemic.”

Millennials aren’t just buying anyway. During the pandemic, the demographic has spread out into alternative markets across the sunbelt region. Tri Pointe Homes is following those buyers in 2021. “We are very excited about the growth of our early-stage divisions in markets across the country—Charlotte, Raleigh, Dallas-Fort Worth, Sacramento and Austin—which all rank in the top 25 markets in the nation and are expected to contribute to the community count and growth plans of Tri Pointe Homes over the coming years,” says Bauer.

Buyers are also looking for specific characteristics if they are going to commit to homeownership. Lifestyle communities are at the top of the list, but the pandemic has catalyzed new demands as well. “As we continue to study changing customer preferences, we have found that COVID-19 led to more people working and schooling from home, which resulted in more buyers searching for housing with multipurpose or flex capabilities,” says Bauer. “We were able to respond by offering flex spaces—rooms that are designed to be flexible to fit the needs of consumers’ work or family situation, such as one that can serve as a home office space or a classroom for those who have opted for virtual learning environments.”

Luckily, Tri Pointe Homes is leveraging technology to respond to these changes needs. “Being a technology-driven company is a high priority for Tri Pointe Homes, as demonstrated over the past two years by our implementation of programs that have increased efficiencies across our operations and vastly improved the customer experience,” says Bauer. “Before the pandemic, we had already invested heavily in new technology to increase our ability to market and sell our communities online. COVID-19 accelerated our use of these technologies, and we are staying ahead of consumers’ desire to shop more and more in a virtual environment.”