Once the territory of millennials, the first-time buyer crowd is slowly filtering out the aging population, being replaced by Gen-Zers. And according to a new report from realtor.com®, 40% of surveyed Gen Z-ers say they plan to purchase a home in the next five years.
“Gen Z values homeownership. However, the oldest members of this generation are just entering the professional stage of life and not yet in a financial position to make a big play as first-time buyers—especially in the current housing market, which is challenging even older generations who have had many more years to save for a down payment,” said George Ratiu, senior economist, realtor.com®. “With nearly three-quarters of those surveyed preferring to buy versus renting long-term, the housing industry should be prepared for millions of Gen Z buyers to bring a new wave of demand along a similar stage-of-life timeline as the millennial generation before them.”
A Difference Between Generations
As with any generational transfer, we can expect home-buying and selling trends to shift as Gen-Zers make their way onto the market.
According to the report, the segment is currently prioritizing education and building a strong financial foundation. Most do not yet have the job security or funds necessary for purchasing a home, but they are working at it.
Here’s what the survey found:
– Half of future homeowners said the No. 1 barrier is job stability
– 45% of those surveyed are already saving toward buying a home
– 49% of future Gen-Z homebuyers see themselves living in the suburbs
– 19% plan to live in a rural area
To read the full report, click here.
Liz Dominguez is RISMedia’s senior online editor. Email her your real estate news ideas to firstname.lastname@example.org.