How Gen Z will shape the housing market
Research shows us that millennials make up the largest segment of the home buying population today, but what about Gen Z–how will they change the marketplace?
Generation Z is anyone that was born in 1997 and 2012, making the oldest of this generation turning 24 this year.
Currently, Gen Z accounts for only a sliver of the housing market, right at around 2%, but as this population continues to age, they’ll slowly become more and more of a force.
The latest trends are already indicating that Gen Z home buyers are entering into the housing market at or around age 24, which is much earlier than millennials.
So what is Gen Z looking for in a home? Keep reading as we uncover these 4 trends that are shaping the iGeneration’s home choice decisions.
More home for their money
Surprisingly, the iGeneration is more financially savvy than prior generations and will be looking to make smart financial decisions when it comes to buying a home.
Positioned slightly better than millennials to enter the housing market, this generation of young home buyers has built up quite a bit of savings, and their frugal nature coupled with their parents ability and desire to help with a down payment will make it easier for them to buy their first home.
Given Gen Z’s propensity to save money, expect Gen Z home shoppers work to maximize their budget, looking for smaller homes in more affordable parts of the country.
On average, Gen Zers will purchase starter homes with an average price point of $160,000, compared to Millennials who are purchasing homes with an average purchase price of $256,500.
Wanted: A sanctuary
In a shocking twist of events, the generation that grew up with technology is actually looking to escape it. Gen Z homebuyers are looking for a quiet space to unwind at the end of their day–citing single family homes, large yards and peace and quiet at the top of their shopping list.
The technology generation likes the idea of being close to a bustling metropolis, but not necessarily on top of it. They like the idea of being able to walk to their favorite restaurants without having to endure the noise that comes with living right next to them. They’d gladly trade location in favor of a larger yard to relax and entertain friends.
Strangers to technology, they are not— so it’s no surprise that Gen Z enjoys working at home. Younger home buyers will be looking for homes that have multipurpose space that they can use for their office or even a home gym. Outdoor space is also a huge selling point with this generation, as they look to have a peaceful space to unwind and entertain friends and family.
Not afraid of a little DIY
Gen Zers are resourceful and they’re not afraid to roll up their sleeves and get to work–especially on their home. Because they’ll be purchasing true starter homes, and since most of them will delay starting a family for many years, they’ll have time on their hands to work on renovating their home. Expect these young buyers to look for affordable homes that may need a little TLC.