Since many members of this generation are just entering adulthood and making their first purchases, it is not surprising that they have yet to make a significant impact on the housing market. Nonetheless, it is important to examine the current trends in order to prepare for the potential growth of Generation Z buyers.
Recent market reports have indicated that Generation Z is starting off slowly but steadily in the homebuying market. A study conducted by Bank of America found that approximately one-fifth (20%) of Generation Z is currently considering buying a home. These findings suggest that Generation Z may be more likely to purchase than other generations such as Millennials (19%).
Furthermore, the study found that the majority of Generation Z buyers (70%) are either first-time purchasers or are trading up from an existing home. This could be a sign that Generation Z is taking a more conservative approach to real estate investments in comparison to other generations. Additionally, the majority of Generation Z buyers (83%) are purchasing homes outside of city centers. This could be attributed to the fact that Generation Z prefers a more suburban lifestyle with less traffic and closer proximity to family and friends.
Despite the slow start, there is potential for Generation Z to become an influential segment of the homebuying market in the future. When asked about their biggest concerns when considering purchasing a home, Generation Z cited affordability and access to a good quality education as the top two concerns. This indicates that they are willing to compromise and prioritize certain aspects in order to reap the benefits of homeownership.
Additionally, Generation Z is embracing new technologies when it comes to the home buying process. Many are using virtual reality tools to explore homes without actually touring them in person. This can reduce time and cost associated with the home-buying process. Furthermore, some of the newest homebuying apps enable users to search for potential properties based on their budget and interests.
Overall, it appears that Generation Z is off to a slow start in the homebuying market. However, market reports indicate that they are slowly gaining momentum. Generation Z has cited affordability and access to good education as their main concerns when considering purchasing a home. Furthermore, this demographic is embracing new technologies to aid in the home buying process. Although it may still be too early to predict how this demographic will impact the housing market in the future, current trends indicate that Generation Z may become a more influential segment of the homebuying population.
This article was contributed on Dec 03, 2023
