Have Millennials’ Housing Preferences Changed in the COVID Era? A Case of the Phoenix Metropolitan Area

The COVID-19 pandemic carries many implications that are resulting in substantial shifts in the way people work, live, and socialize. Interest in the effects of the pandemic on residential mobility and discussions about the short- and long-term impacts on housing preferences have grown. Recent studies have explored the pandemic’s implications for the housing market. Yet, little is known about how COVID-19 is changing people’s housing needs and residential choices.This research narrows the gap in the literature by exploring changing housing preferences in the Phoenix metro area (PMA) among Millennials (i.e., those born between 1981 and 1996; Pew Research Center, 2019). The study uses data from (i) one- on-one interviews with Millennials and other generations, planners, and real estate agents, (ii) the U.S. Census, (iii) Zillow, and (iv) scholarly publications and regional media to investigate the push and pull factors shaping emerging Millennial housing trends in the PMA. This study also investigates the implications of Millennials’ changing residential choices on the PMA housing market, with special attention to impacts on social equity. The findings suggest that the pandemic has made Millennials reevaluate their residential choices. While this generation's locational housing preferences were strongly motivated by proximity-related factors (Ehlenz et al., 2020; Pfeiffer et al., 2019), telecommuting and online learning resulted in Millennials’ mobility to smaller cities, suburban neighborhoods, and areas far away from jobs and schools. This research also finds that Millennials are becoming more interested in privacy, flexibility in housing, and larger homes that include work and outdoor spaces. Finally, the study reveals concerns about the increasing risk of eviction because of the business shutdowns and employment losses caused by the ongoing health crisis. Overall, this research suggests that planners and decisionmakers should rethink PMA urban growth policies to avoid continued suburbanization and social justice challenges, such as eviction and foreclosures. It also highlights the positive outcomes of flexible housing as an effective tool for community development. The findings suggest that planners and developers should integrate considerations of generational diversity into housing practice and theory.