Are millennials leaving city life behind? Where these players in Phoenix real estate are going

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PHOENIX (Opendoor) – The term “unprecedented” has become cliché in today’s climate. It seems like life has been nothing but unprecedented for the past few years. (How many memes have you seen begging for “precedented times”?) Still, “unprecedented” is the perfect word to describe the current housing market in Phoenix. Rising interest rates and low inventory have turned up the heat on a market that already was red hot.

“The fact that demand in Phoenix has lasted this long is something we haven’t seen in recent years,” said Beatrice de Jong, a consumer trends expert at Opendoor. “If this is truly the new normal – or at least the norm for right now – it won’t stop people from continuing their buying and home-selling journey. This resilience is especially true for America’s millennials, who are the movers and shakers in real estate right now.”

Real estate resiliency and what it means for Phoenix home buyers and sellers

Yes, millennials – those born between 1981 and 1996 – are the big news in Phoenix real estate right now. The largest population group in the U.S., millennials range in age from 26 to 41, and trends show they are not only leaving city life behind but also not letting anything deter their plans.

“According to Opendoor’s real estate trend report, ‘The New Normal,’ 52% of millennial buyers are saying rising [interest] rates won’t impact their buying timeline or decisions,” de Jong explained.

Where are millennials going in the Phoenix area?

“Millennials are saying, ‘Goodbye, city,’ and ‘Hello, suburbs,’ this summer,” de Jong said. “We’ve seen more consumers choose to buy a home in the suburbs over the past year, and millennials are no exception. Our Opendoor report showed 37% of millennials are considering a move to a suburb compared to just 22% back in 2020.”

According to de Jong, two significant motivating factors are the allure of more space and the desire for a bigger or newer house.

“Phoenix is leading the nation in home price increases with prices up 29% year over year. This surging demand in Phoenix is driven by buyers moving from urban apartments to suburban homes.”

“The fact that demand in Phoenix has lasted this long is something we haven’t seen in recent...
“The fact that demand in Phoenix has lasted this long is something we haven’t seen in recent years,”(Opendoor)

Millennials are leading the way, and they’re doing it with what they know – technology

“Like every generation, millennials do things a little differently than their parent’s generation. This is the generation that gave us influencers, dating apps, and bottomless brunch; they’re getting married later (if at all), and they may or may not have kids,” de Jong says. “But there’s one life milestone that has stood the test of time, even for this open-minded generation: they definitely still want to become homeowners.”

"More than other generations, 72% of millennials say they're browsing for real estate actively,...
"More than other generations, 72% of millennials say they're browsing for real estate actively, and they're turning to less traditional sources, including TikTok, Instagram, and Facebook."(Opendoor)

Circumstances have not made it easy for them. Pandemic, inflation, anyone? But millennials are determined and willing to make sacrifices. Nearly 70% of millennials say they genuinely want homes of their own, according to Opendoor, and they have three main reasons.

  • Raising a family
  • Better living conditions
  • Stop paying rent and having a landlord

“Millennials are becoming bigger players in the Phoenix real estate market, and they’re playing differently,” de Jong explained. “More than other generations, 72% of millennials say they’re browsing for real estate actively, and they’re turning to less traditional sources, including TikTok, Instagram, and Facebook.”

The internet has been ubiquitous – especially for the younger generations -- for quite some time now. However, until recently, there were still things most people preferred to do in person, like grocery shopping, going to the doctor, and buying or selling a home. The pandemic brought a significant shift in how we do pretty much everything. We’ve gone from IRL (in real life) to online, and, for many, there’s no going back.

“While many new buying and selling habits were inspired by the pandemic, our report illustrates that the real estate experience has undergone a generational shift to digitization -- and these changes are here to stay,” explains Opendoor’s report

🔗 More from Opendoor

Buying a home, especially a first home, traditionally has been a complex process that was slightly terrifying to some. Opendoor has removed the mystery and potential fear by moving that process into a world in which millennials feel comfortable – the digital one.

“Opendoor makes the process of buying and selling a home as easy as the tap of a button,” de Jong said. “It’s a one-stop-shop – a fast, certain solution for eligible homes to unlock equity for homeowners to purchase their next home.”

Buying or selling a home in Phoenix? Watch these Opendoor videos first!

Those looking to buy simply download the Opendoor app and start scrolling.

“We’ll help you find a home, tour a home, and close on that home at your convenience,” de Jong said.

Buying a home, especially a first home, traditionally has been a complex process that was...
Buying a home, especially a first home, traditionally has been a complex process that was slightly terrifying to some. Opendoor has removed the mystery and potential fear by moving that process into a world in which millennials feel comfortable – the digital one.(Opendoor)

It’s just as simple for most sellers. Enter some information on Opendoor.com, and if your home qualifies, you’ll get a preliminary offer within minutes. Not hours. Not days. Minutes. If that long.

🡭 See what kinds of homes Opendoor buys

If you like that initial offer, you’ll take an Opendoor expert on a video tour and get a final offer a short time later. You don’t have to worry about repairs or showings. Happy sellers say those alone are worth selling to Opendoor, but there’s another big check in the pro column. If you go ahead with a sale to Opendoor, you choose your closing date. That means you can coordinate selling your current home with buying your next one, which is huge. Ask anyone who has had to pay two mortgages for a month or longer.

Requesting an offer from Opendoor costs you nothing. The service is free and there are no obligations.

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