COVID-19 and it’s recent impact on the economy has thrown us all for a loop, especially when it comes to making big decisions, like buying a home.
In a recent poll, we took some time to ask educators whether or not, and how, COVID-19 is impacting their thinking on homeownership, and here’s what we found:
- The vast majority of educators – 82 percent – who do not currently own a home are less confident in their ability to purchase one due to the economic impact of COVID-19. This is compared with 60 percent of non-educators.
- 78 percent of educators are less confident in their ability to save enough for a down payment to purchase a home, compared to 61 percent of non-educator respondents.
And, this data underscores the importance of Landed’s work to help essential professionals build financial security in the communities they serve. These results are a real call to action for our team to double down on our efforts, especially amidst economic turmoil.
Looking at our own data of Landed homebuying educators, over the past few months, we actually saw an uptick in homebuying activity. We’re finding that if you provide teachers and staff with support – specifically help overcoming the hurdle of saving enough for a full down payment – they are able to take advantage of record low interest rates and less competition to attain the dream of homeownership in expensive places during this unique moment.
- Since the COVID-19 outbreak began, we’ve seen our highest number of offers accepted for the year – 13 offers accepted in one week – during the third week of May.
- In the Denver metro area, prior to COVID-19, Landed’s educator homebuyer offers were accepted at a rate of 25%, compared to 40% of offers now being accepted in the midst of the virus outbreak.
- In the Bay Area, 25% of Landed’s customer offers are being accepted during COVID-19, up from a rate of 10%-15% prior to the pandemic.
And, when the educators we work with do purchase a home, they state that they plan to stay with their school employer for an additional 13 years on average, dropping the implied turnover rate for our education system from as high as 22% down to 7%.
This is promising news, and we hope to continue to be one important tool in the toolkit to help all educators feel more secure in their financial future.
If you have teachers, professors or other school employees in your life, or yourself are an educator, send folks to Landed.com to learn more about how we work to keep essential professionals local and financially secure through homeownership.
What else will Landed do?
Despite our efforts to date, even more is needed. Our society depends on the vital work of our teachers, school staff, and other essential professionals. We must do more to uphold those who uphold our communities.
In addition to the products and services we already offer, our team is rolling up our sleeves to advocate for more respect for the people we all call “essential,” as well as find ways of accelerating an outcome of our work that advantages access to ownership for individuals from demographic groups who have historically been locked out of the opportunity to purchase land for their own families, largely (if not entirely) as a result of institutionalized racism and discrimination. Previous analysis of our homebuyer data from the Bay Area has shown that over 40% of Landed’s buyers are from underrepresented minority groups (black, Latinx and Asian Pacific Islander), compared to around 12% for this same demographic group in the Bay Area homebuying population as a whole. Our focus on magnifying this last point couldn’t feel more pressing or important than it does right now.
In the coming weeks and months, we will be pushing for fairer compensation for essential professionals and the adequate funding required for the institutions that employ them. Whether it’s championing educators as their incomes are threatened, or, investing in change at the public policy level to support the institutions who employ our critical workers, Landed has begun and will continue fighting for our customers on all fronts.
We’re encouraged by the progress we’ve made helping hundreds of educators across the US realize the dream of homeownership and know there is so much more work to do so that more essential professionals can attain financial stability. Despite these uncertain and unprecedented times, our purpose to uphold those who uphold us has never been clearer.