Study shows millennials buying bigger homes, sometimes sight unseen

(The Center Square) – A new study shows more millennials would consider buying a home without even seeing the property first hand.

Clever, a real estate data company, found that nearly 80 percent of millennials would consider buying a house sight unseen, and 29 percent would buy a house after only seeing photos or a virtual tour.

Spokesperson Kristen Herhold said the current seller’s market and the pandemic are contributing factors.

“There’s low inventories and millennials if they find a home they think they like they want to make an offer, but they also want to be safe too, so virtual tours are a lot more common than they were,” said Herhold.

The real estate market in Illinois continues to be robust, even as inventories throughout the state remain tight.

Ed Neaves, a member of the executive committee of Illinois Realtors, said the pandemic is prompting some millennials to make an offer without physically touring a house.

“They are a little reluctant to do air travel because of COVID, they can’t get there in time in their car because houses are going on the market and selling within hours, so that’s fueling this ‘sight unseen’ marketplace,” Nieves said.

Home prices are expected to rise over 10% in 2021, so millennials are facing the reality of skyrocketing demand and vanishing inventory. The study shows 52% of millennials are anxious about homeownership, with nearly half fearing hidden costs that could derail their finances.

Some millennials are looking for more spaces after a year of staying at home. The study found they are looking to move to the suburbs for homes with about 2,400 square feet, a 41% increase from last year.

“Millennials are spending a lot more time at home and want more space, and more millennials want a home office,” Herhold said.

Neaves said the current conditions in the real estate market are like a “perfect storm.”

“Because of low inventory and low interest rates, buyers are finding that they may put offers in on 3, 4, 5 different houses and not get them, so when the sixth one comes along and time is of the essence, they will buy them sight unseen,” Neaves said.

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