Buyers' Needs Change When They Become Parents

When it comes to home buying, kids can change everything.

Beyond the feedings, child care decisions and other logistical considerations, the arrival of a child can turn casual home shoppers into determined buyers who know what they want and are willing to sacrifice to get it.

Zillow research offers strong evidence that life events, including the arrival of a child, prompt people to move. When parents with children under 18 in the home choose to buy, they have a longer list of needs and wants for their neighborhood and home than households without young children, according to the Zillow Group Consumer Housing Trends Report 2019.

Bedrooms, private outdoor space top the list of important home wants

Buyers with young children who bought a home in the past year said it was very or extremely important to them that their home have:

• Their preferred number of bedrooms (80% of buyers with children cited it versus 71% of buyers without kids)
• Private outdoor space — a patio, deck or yard (71% versus 64%)
• Their preferred utilities — gas, electric, etc. (67% versus 57%)
• Ample storage (66% versus 61%)
• An en-suite or master bathroom (64% versus 57%)

Buyers with children also were more than twice as likely to say they wanted the opportunity to rent out their entire home in the future (39% versus 17%) and the opportunity to rent out a portion of their home while they’re living there (34% versus 15%). 

Parents more likely to sacrifice to buy their homes

The interest in rental income may be due to the fact that buyers with children make more financial sacrifices to buy their homes. Among other things, they:

• Reduce spending on entertainment, such as eating out, concerts and movies (29% versus 21% of buyers without kids)
• Pick up additional work, either by working more hours at their current job or getting a second one (24% versus 13%) 
• Postpone or cancel planned vacations (21% versus 13%)
• Reduce monthly payments or cancel technology/communications services such as cable TV, cell phone and internet service (19% versus 11%)

Outside of cutting spending, buyers with young children also are more likely to revise their list of must-haves to stay within their budget. Only 34% of buyers with kids make no sacrifice to buy their home compared to 51% of buyers without kids. Those who do stay in or under budget:

• Give up preferred finishes (21% versus 16% of buyers without kids)
• Increase their commute time (18% versus 12%)
• Buy in a neighborhood that lacks their preferred amenities (14% versus 8%)

Neighborhood preferences differ, sometimes significantly

Differences between the two groups are especially striking when it comes to neighborhood preferences. In fact, almost every single neighborhood characteristic is more likely to be rated very or extremely important for buyers with young children at home compared to buyers without kids. 

Among other things, buyers with children say it’s very or extremely important that their home be:

• In their preferred school district (64% versus 23% of buyers without kids)
• Walkable (66% versus 55%)
• Able to offer a sense of community or belonging (57% versus 40%)
• Close to family and/or friends (50% versus 41%)

A racially and economically diverse neighborhood is not a must-have for most buyers, but each of those characteristics is very or extremely important to 43% of buyers with young children. For buyers without children, 22% say racial diversity holds such importance for them, and 25% say the same holds true for economic diversity.

Timing and affordability can sway parents to consider renting over buying

Buying a home can represent a heavier lift for parents with young children both financially and in terms of logistics. Nearly half (49%) say they would like the option of moving their closing date versus 38% of buyers without kids who express that preference.

Finding an affordable home and neighborhood that meets their wants and needs, and the challenges around timing, are likely why buyers with children are more than twice as likely to seriously consider renting instead of buying (29% versus 14% of buyers without kids).

Despite the challenges, buyers with kids are likely to be extremely satisfied customers who overwhelmingly love their home.

Takeaways:

• Be mindful of significant life events that are likely to trigger moves: graduation, promotions, marriage, children, divorce, retirement, etc. The emotional state of a buyer and their needs are likely to differ based on the reasons for their move.
• Recognize the significance of timing as a pain point for buyers with young children.
• Buyers with kids are likely to place greater importance on the neighborhood. Become familiar with community activities, family-friendly restaurants and other amenities that can help families visualize life unfolding in their new surroundings.