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As the Millennial generation begins to age out of its young-adult titles, more Millenials are looking to become homeowners. Yet, there are factors of our current economy that affect where, when, and how the majority of Millennials can become homeowners. According to a 2018 Federal Reserve study, Millennials are less well off than previous generations. They are spending more, making less, and have significantly less savings. Even cities deemed affordable are not priced low enough for many Millennials. As the generation gets priced out of cities such as New York and Chicago, many migrate to Seattle, Denver, and Austin, according to Forbes.
Today's pandemic market has a similar focus on affordability. Several surveys have found that most people attribute relocating to the fact that they could no longer afford current housing, rather than moving strictly because of the threat of Covid-19. A market correction in housing and financial stability are two of the main factors millennials consider when moving into metropolitan areas.
A spike in searches for bigger living spaces might indicate that the market is heading toward horizontal cities that offer ample square footage. However, it's still unclear if migration out of major vertical cities should be attributed to Covid-19. I believe a price correction to properties value was due.
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