Homebuying for the Gen Z’er

Gen Z homebuyers – yes, they do exist – have some specific preferences about what they’re seeking. But before you delve into those, recognize that they definitely have an interest in owning homes despite some of the economic challenges in the market. A recent RE/MAX survey revealed that 65 percent of Gen Z wants to purchase a home, but they worry about upfront costs and property taxes."While current market conditions have impacted timelines, this next generation of home buyers is resolute in their desire to achieve homeownership,” said RE/MAX president Amy Lessinger.

The results of a RE/MAX survey reflect a post pandemic trend. Gen Z members, especially those between the ages of 25 and 34, not only want to buy homes but were tracking ahead of Millennials and Gen X members for home ownership, according to a 2023 study by Redfin. More than 30 percent of Gen Z member owned their homes in 2022 according to the study, a slightly higher percentage than the 28 percent of Millennials (born between 1981 to 1996) who owned homes at that age and the 27 percent of Gen Xers (born between 1965 and 1980). That trend for Zoomers slowed because of higher mortgage rates and price increases, but an expected interest rate cut from the Federal Reserve could reignite their home buying power.

What do these homebuyers want? Price (59%), location (54%), size (34%), neighborhood safety (33%), and mortgage rates (24%) emerged as factors in the RE/MAX study. With 50 percent of Gen Z members still living with their parents, attainability and a willingness to compromise spur their desires, according to a 2024 study from New Home Trends Institute. The New Home Trends report says cost concerns have influenced design preferences. The national story cited Casa Fresca’s homes in Parrish as an example of prioritizing attainability. The homes feature simple layouts with open great rooms, flex spaces, and plenty of storage.

Private outdoor spaces also rank high with Zoomers, with 44 percent stating it’s more important than having a garage. Some communities have separated parking from contemporary designs, forgoing garages to put parking in the back of homes. The desire to cook at home amplifies the need for attractive kitchens, but the appliances and space can’t create an added expense.

Both the New Home Trends study and a May 2024 Realtor.com report underscore the importance of multi-functionality when appealing to Gen Z members. Workspaces and smart technology are expected, even in starter homes. Chris Porter, chief demographer at John Burns Research & Consulting, notes that the shift to remote and hybrid work has Zoomers adding suburban locations to the highly desired urban locales.

“Remote work certainly opens up more parts of the country to Gen Z,” Porter told Realtor.com. “They’re looking for attainability and affordability. They’re seeking out those geographic areas where that’s achievable for them.” They do, however, want to live near gathering places where they can be with other people. They’re likely to be looking for areas where they can go out over the weekend to a brewery or high-end bowling alley, or enjoy some other experience they can’t do online. Says Jonah Stillman, co-founder of the GenGuru consulting firm: “We know that Gen Zers are looking for big-city life, but they’re not looking for those big costs that come with it.”