We recently conducted and released a nationwide survey that reveals home buying trends and perspectives from Generation Z. As Gen Z begins to make its way into the real estate market, we want to understand what is most important to them when it comes to buying a home.
Our survey asked questions such as “what is your number one reason for wanting to buy a home?”, “what is the number one thing you are looking for in a home?”, “how much are you willing to spend on a home?”, “would you consider buying a home online or using an app?” and more. Per our survey, technology, affordability and overall experience with an agent and brokerage are most important to Gen Z home buyers.
Check out the key findings:
It’s no surprise that Gen Z ranks technology as a top priority when it comes to buying or selling a home. The majority of participants (67%) said they would consider using an online service or app to buy a home compared to 39% of millennials. While millennials are currently the largest adopters of real estate technology, digital tools will become even more prevalent as Gen Z enters the real estate market.
With rising sale prices and lack of inventory, today’s real estate market is challenging for first-time homebuyers. 44% of participants said they are willing to spend $150-$250K on a home, which is much less compared to other generations. According to the National Association of Realtors, the median U.S. existing-home price is over $360,000, proving this generation will need to be willing to spend more in order to achieve homeownership in today’s market.
The majority of today’s home buyers are straying from the norm and not putting down the traditional 20%. To afford homeownership in today’s hot market, younger generations are putting less money down. 57% of participants said they are willing to put down 3-5% on a home, while 53% of millennials are willing to put down less than 15% on a home, and 27% of millennials planned to put down less than 10%.
Gen Zer’s number one reason for wanting to buy a home was a lifestyle change. The COVID-19 pandemic has changed lifestyles dramatically, with many working from home and having the accessibility to move to new cities. 46% of participants said a new job, growing family, or relocating was the number one reason for wanting to purchase a home. Many Gen Z buyers are purchasing homes in more affordable cities including Salt Lake City, Oklahoma City, and Phoenix.
Gen Z is following in the footsteps of millennials by valuing experiences over things. The overall company experience is the most important factor for Gen Z when it comes to the home buying or selling process. When searching for a real estate company to buy or sell with, 52% of participants said the overall experience from start to finish is the most important factor, followed by technology at 33%.
Over 1,000 participants were surveyed through BRG Research Services between the ages of 18-24. Respondents were surveyed between June 22 and June 25, 2021.
Turn to a Homie
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*Subject to terms and conditions outlined in the Buyer Broker Agreement.