COLUMBUS, Ohio (PRWEB) January 26, 2022
Matic, a leading insurtech platform, today released its annual State of Homeownership Report, which highlights insights from its recent Home Insurance Satisfaction & Homeownership Survey.* Findings show that in light of major global events, including the COVID-19 pandemic, the migration away from large cities, and the increase in career changes and job resignations, homeowners under the age of 30 are making serious changes when it comes to moving, selling, and refinancing their homes, while senior homeowners are less likely to change their living arrangements or proactively evaluate their finances.
In the last year, experts observed skyrocketing home prices and general extremes in buying activity. Between November 2020 and November 2021, the average price of an American home increased by 18%, its highest value in 45 years. The latest Matic report signals an end to this frantic homebuying, driven by millennials — the report findings show that a large number of homeowners are now switching gears and taking advantage of market conditions by selling and refinancing. The survey found that over 25% recently sold their homes or reported plans to sell within the next 18 months. While 48% of homeowners ages 21-29 reported plans to sell their homes, only 18% of those over the age of 60 expressed similar plans, showing a notable decrease in willingness to sell as homeowners age.
Matic’s findings reveal that current market conditions and global events have also created interest in completely new ways of living –– more people are exploring lifestyles that don’t involve traditional homeownership. The survey found 38% of homeowners ages 21-29 reported currently living or planning to live in an alternative home. Many aim to choose an alternative in the near future with 12% aiming to rent and almost 16% saying they will live in an RV, van, or tiny home. A large majority of people who sold their homes made a major move to a new city or state, driven by the rise in remote working options from the COVID-19 pandemic. In fact, 75% of movers ages 18-60 left for a new city or state, indicating a clear appetite for change among pre-retirement homeowners.
“In 2020, people generally stayed put because of uncertainty and restrictions related to the COVID-19 pandemic. In 2021, people started to identify what they wanted and where they wanted to be,” said Ben Madick, CEO and co-founder of Matic. “Those prioritizing financial stability typically need income security before making a move, especially if they already have housing security. With more remote work opportunities, income security for some now doesn’t have to rely on location.”
Selling, refinancing, and relocating trends are likely to continue in 2022. Matic found that 33% of survey participants under 30 are planning to sell their home in the next 18 months, while only 13% of senior homeowners plan to do so. When it comes to refinancing, younger homeowners will continue to refinance more often than senior homeowners, with 30% of those ages 21-29 saying they planned to refinance soon, and only 5% of those over 60 indicating the same. Matic’s results reveal that exploration of new ways of living will build popularity among younger homeowners — 50% of respondents ages 21-29 said they plan to forego traditional homeownership to pursue alternative housing. Overall, as the pandemic continues and economic outcomes are still uncertain, it appears younger homeowners are willing to take a chance at trying something new.
*Methodology: Findings from this report come from Matic’s proprietary survey of over 500 homeowners over the age of 18 conducted in November 2021.
Since 2014, Matic has changed the landscape of the insurtech industry by integrating insurance within the home and auto ownership experience. Today, Matic’s digital insurance marketplace has over 40 A-rated home and auto carriers, as well as distribution partners in industries ranging from mortgage origination and servicing to banking, real estate, personal finance, and much more. With a single-minded focus on advocating for policyholders, Matic has created an effortless and transparent comparison-shopping process, saving customers days of work and over 30% in premiums each year. For more information, visit matic.com.