Homeownership is a top priority for Generation Z. Even though the housing market isn’t as buyer-friendly as it was for Millennials, they are still optimistic about their homeownership prospects.
They Want a Home They Can Afford
Gen Zers are eager to own homes but also want to ensure they can afford the mortgage and the associated expenses. According to a survey of 1,483 adult members of Generation Z, this concern is shared by millennials and Gen Z homebuyers. Homeownership is a key milestone in life and an important symbol of success for many. This desire to own a home is powerful among Gen Z, the most ambitious generation in history. As a result, they are more likely to pursue homeownership as early as age 25 than previous generations, according to a 2022 report. Aside from the financial benefits, most Gen Zers prefer homeownership over renting, especially if they can purchase homes and houses for sale in Katy, TX, or in a desirable area. To help aspiring homeowners achieve their goals, real estate agents should educate them about the local housing market and how to find the right home. To do so, they should focus their marketing efforts on social media.
They Want a Home That’s a Good Fit
Generation Z wants a home that fits their lifestyle and social life. This is more than a desire for the latest home design trends, although they have some preferences. They want their homes to have creative spaces for hobbies and interests, pet-friendly communities, and the ability to collect packages if they are away from home. They also like homes that are energy efficient. Like millennials, Gen Zers are interested in buying in cities with vibrant cultures and good job opportunities. However, they may be willing to move farther inland than their millennial counterparts to get a better value on the housing market. With remote work opportunities booming and wages increasing thanks to the pandemic, this isn’t an unreasonable idea for some members of this generation.
This desire for a perfect fit does not mean that Gen Z is completely unaware of the difficulties and expenses involved in homeownership. Most of them need to pay more attention to how much it will cost to own a home. With their expectations lower than the actual market, they will find saving enough for a down payment and closing costs difficult. Ultimately, Gen Z’s ability to buy a home will depend on whether or not they can afford to put down a down payment and close costs, qualify for a mortgage, and handle the financial responsibility of owning a home. Given that these factors are only sometimes in their favor, it’s unlikely that Gen Z will be able to achieve their goal of homeownership anytime soon.
They Want a Home That’s a Good Value
Despite a volatile market, Gen Z still believes in the American dream of homeownership. 97% of this demographic hopes to own a home at some point. As the economy continues to improve, more Gen Zers may be able to reach their home-buying goals. However, the housing market can still challenge new buyers even with a strong labor market. Mortgage rates are rising, and home prices have increased. It will be challenging for many to afford a home, especially if they have little time to establish their careers. The survey also found that many Gen Zers need to pay more attention to how much it will cost to purchase a home. 80% of the respondents underestimated how much they would have to save to make a down payment. If Gen Zers save at the rate they expect, it will take them about ten years to have enough savings to buy a home.
They Want a Home That’s a Good Place to Live
Despite a challenging housing market, Gen Zers are determined to buy homes. In fact, according to a survey by Rocket Mortgage, 71% of Gen Zers plan to purchase their first home within the next 1-6 years. That’s nearly identical to the timeline for millennials. While Gen Zers may be eager to buy, they’re also realistic about the obstacles ahead. Almost 75% of respondents said they believed financial challenges would make it most difficult to become homeowners, with the most common challenge being a lack of sufficient savings. To help overcome this hurdle, many Gen Zers are taking steps to boost their credit scores and save money for a down payment.
In addition, many Gen Zers are motivated to buy homes because they want residential stability. They’re tired of constantly dealing with rising rent prices and would rather have the ability to control their housing costs.
Understanding the unique needs of this generation will be necessary for real estate professionals. For example, this tech-savvy generation expects a fully digital experience when applying for loans or renting properties. This means they will want websites that load quickly and expect all forms to be submitted online.