Millennials’ entry into the housing market is a popular topic, but a new generation is already poised to follow in their footsteps – Generation Z. Some aren’t even old enough to vote, but these kids are already thinking about homeownership.
Gen Z, born between 1996 and 2010, are already conscious of their financial status. According to The National Association of Realtors, Gen Z members aim to own a home by the age of 28. Having lived through the recession, NAR found, Gen Z members are cautious about spending their money. Similarly, a Better Homes and Gardens survey found that Gen Z Americans expect to rent first, then focus on paying off student loans before buying a house.
Generation Z’s Goals
The Better Homes and Gardens study surveyed 1,000 teens ranging from 13 to 17 years old through an online survey. It focused on Gen Z’s attitude toward homebuying and their financial futures. The study’s main findings included:
• 60 percent strive to earn an advanced degree
• 59 percent want to get married
• 21 percent wish to start a family
• 47 percent wish to stay in the suburbs
• 23 percent want to live in the city
• 20 percent want to live in a rural area
• 76 percent want to live with a significant other
• 15 percent prefer to live alone
• 61 percent claim to have started saving money
• 57 percent are counting on parents helping out with a down payment
Gen Z is unique in its diversity. According to recent numbers from the Census Bureau, it is bound to be the most diverse generation in America’s history, due in part to a notable increase in the Hispanic population, which grew at four times the rate of the total population between 2000 and 2010. The number of biracial individuals rose 134 percent, and those identifying as Caucasian and Asian rose 87 percent.
Unlike Millennials, Gen Z members are used to accessing content via subscription and streaming on demand. Technology will play a crucial role in their home search.
Better Homes and Gardens’ research shows that 85 percent of surveyed teens will view online home listings to determine what home styles, features and square footage their prospective home will have. Seventy-one percent said they would view virtual tours of homes, and 29 percent would video chat with an agent.
Though Gen Z members expect to view agent profiles and work history and experience before choosing one to work with, they still value personal interaction. Better Homes and Gardens found that 81 percent would prefer to work directly with an agent, and only 19 percent would buy a home online.