Let’s talk about Gen Z, which is defined as the generation born between 1997 and 2012. Gen Z is entering their homeownership era and 89% of Gen Z believes that owning a home is a good investment. Incredibly, already 25% of Gen Z (ages 18-25) are homeowners, while 45% of Gen Z are renting. A little over half of Gen Z (51 percent) say that they plan to purchase their first or next home within the next 5 years. This means a large wave of home buyers will be entering the market. If you are a homeowner who is considering selling your home, then guess what – there is demand for it!
What is motivating Gen Z to purchase homes? The leading motivation is to grow or start their family, followed by having a stable housing payment, and having more space. Gen Z also sees real estate as an investment.
Gen Z prioritizes walkability and nearby activities in their home search – which is important if you are a seller because that might make your home attractive to a Gen Z home buyer!
Ultimately, as a REALTOR we advocate for homeownership across all generations and it is exciting that Gen Z is motivated to buy real estate and chase the American Dream. Homeownership can transform people’s lives both in economic ways (increased wealth accumulation) and in the intangible ways (the memories, gatherings, and reward of working towards owning the roof you live under).
Do you have a kid who is Gen Z who is interested in purchasing a home? What is motivating them? We would love to know!
