Highlights From Zillow Unlock 2020

This year at Zillow Unlock, we looked at how the pandemic has altered the way consumers view their living spaces and, crucially, how they search for and purchase a home. From the pivot to virtual touring, to expectations for floor plans, and what the Great Reshuffling means for demand, we unpack the trends and opportunities in the new construction landscape that emerged in 2020.

Here are some of the not-to-miss conversations that took place during our virtual conference series. Couldn’t make the live sessions? Stream our Unlock presentations below.

Unpacking the Consumer Housing Trend Report for builders 

Data for the 2020 Consumer Housing Trend Report was collected in May, in the early days of COVID-19 when pandemic uncertainty dominated the news cycle. In his presentation, “10 Insights in 10 Minutes,” Brett Steele, Senior Sales Manager of New Construction, broke down the findings. He also presented 10 innovative ways Zillow can help builders capitalize on the insights and ensure their offerings match up with evolving buyer needs. 

Here are three significant insights from his talk.

1. Transparency into the home buying process is key

The data makes it clear — many people struggle with the process of buying a new home. In fact, 80% of new construction buyers say they find some part of the home purchase process challenging, a 6% increase over last year. While this number is certainly high, it also represents a sizable growth opportunity for both Zillow, and our builder partners. As we work to streamline the home-buying experience, understanding buyer pain points can help us learn where to invest our time and money. As an example, for builders this could mean a webpage dedicated to mapping the customer journey, in an effort to simplify the pathway to purchase. 

2. Virtual showings are here to stay

Even though a home is the largest purchase most Americans will ever make, a surprising number of people indicated feeling comfortable making that purchase after a virtual showing only. 

Perhaps less surprisingly, the younger the buyer, the more comfortable they are with this concept. The report showed that just under half (49%) of buyers under 40 feel very or extremely confident about making an offer while only seeing it virtually. What’s more, 70% of consumers under 40 are buying their first home. 

This trend is likely to continue post-pandemic and highlights how critical it is for builders to have a solid, highly detailed online presence.

3. Floor plans, floor plans, floor plans

As consumers begin looking at their residence not only as a home, but also as a gym, office, child care center and more, the importance of adding a floor plan to the marketing mix can’t be underestimated. 

How important are they? Eighty-five percent of new construction buyers say that a home with a floor plan that fits their needs was an important part of their decision. More than 50% say they’ve wasted time viewing properties they’d have otherwise skipped if they understood the floor plan.

For builders, this opens up a clear opportunity. By ensuring listings have a clear floor plan included, they can determine early on if a property will work for a potential buyer — no showing required. 

Watch the full presentation: 

The Great Reshuffling

What’s the Great Reshuffling? According to Zillow CEO Rich Barton, this development represents a “tectonic shift” in the way we think about, and customize, our home environments. (Zoom calls from home, anyone?) It also alludes to changes in where we’re choosing to live. 

For new construction builders, the opportunities for growth generated by this shift are enormous. Zillow Senior Economist Jeff Tucker discussed some of those opportunities while walking participants through the “explosive numbers for interest in new construction homes on our platform.”

Rising demand for new construction

More than just an anecdotal occurrence, housing data appears to show that other notable shifts are afoot. In August alone, we saw year-over-year growth in new construction pageviews rise 75% — double the rise in overall for-sale listings on Zillow, which stood at 37%.

Suburban inventory shortage driving up prices

The inventory shortage caused in part by COVID-19 shutdowns, coupled with a trend of moving to the suburbs in search of more space, is real. Suburban listings were down almost 50% compared to this time last year, and about 29% lower in urban areas. 

As the result of this decrease in inventory, prices rose sharply. Zillow data now shows sale prices growing about 10% year over year, with days on the market decreasing from 28 days last year to only 13 days in 2020.

Rising population driving demand

Interestingly, a factor driving growth over the past year had nothing to do with COVID-19, and everything to do with rising population numbers. We learned that there are almost 5 million more Americans aged 26 to 35 now than there were 10 years ago. With this younger group also being more inclined to do their home-shopping online, this is the time for builders to make sure their listings are promoting the features they’re looking for.

Watch the full presentation: 

Getting to know Listing Connect

Zillow recently announced a new product, Listing Connect. Zillow’s Director of New Construction Industry Relations, Qadra Evans, gave attendees a rundown on how builders can use it to increase their listings’ exposure.

Listing Connect helps builders connect existing MLS spec listings to their Promoted Communities on Zillow, eliminating the need to re-enter duplicate information from live listings. Once connected, Zillow takes care of the rest. It’s all about keeping things simple and profitable as we move forward together.

Watch the full presentation: