A recent MReport highlights the factors that are influencing young adults’ saving and spending behaviors. Some young adults who were fortunate enough to maintain employment throughout the COVID-19 pandemic, and were able to save money, will put the savings towards purchasing a home. According to a recent Zillow survey, three in five young adult respondents plan to use money saved during the pandemic towards a down payment on a home. That was the second most common response when asked about their plans to spend the money saved, behind “paying for everyday living expenses”. Manny Garcia, a Zillow Researcher, stated that “homeownership still appears to be a priority and aspiration among those sometimes called the rent forever generation”. Unfortunately, not all young adults had the financial ability to save money during the pandemic. Roughly 3 million young adults moved home due to pandemic financial problems.
WHAT DID THE SURVEY FIND?
Zillow questioned 1,200 young adults who consistently worked and their survey found that 83% of respondents had put money into at least one spending category. 64% of those surveyed plan to use their savings for everyday living expenses. 59% plan to spend their savings on a down payment for a home. In addition, Zillow researched buying behaviors of millennials and generation Zers. 44% replied that they preferred a home in a remote area, compared to the 36% that preferred a home in a big city. 20% reported having no preference in regards to home location. 61% of those surveyed consider proximity to work important when considering where to relocate. The report also found that 71% of young adults discuss their housing decisions with their parents and 61% discuss with their friends. Roughly 50% discuss housing decisions with their siblings and 29% discuss with their grandparents. The data revealed that only 16% seek housing advice from social media followers, but 25% stated that social media influencers inform their housing decisions.
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Click here to read the full Zillow report and learn more!
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