Gen Zers are staking out their territory in the housing market with agility and smarts. They know from observing their millennial predecessors that housing prices are outpacing wage growth, so they’re looking to get in now while mortgage rates are low. And they’re leveraging tech tools (like proptech that helps buyers house hunt from a distance) and flexible lifestyles to expand their search for affordable homes in markets where homeownership is more attainable.
While millennials often chose high-end urban centers like San Francisco, Los Angeles and Austin when buying their first home, early data suggests that Gen Zers are more flexible in where they buy. This flexibility is likely due to their use of technology and remote work options, which allow them to broaden their real estate searches geographically. As a result, the best cities for buying homes in 2023 include more mid-sized, comparatively affordable markets such as Virginia Beach, Indianapolis and Kansas City. Also read https://www.hapahomebuyers.com/sell-your-house-fast-in-summerdale-al/
Even so, affordability is still a major hurdle for many Gen Zers who want to buy. This is largely because many of them have significant student loan debt and lower wages than the previous generation. As such, they’re embracing creative solutions to help alleviate the cost of homeownership, like moving back in with their parents and engaging in “house hacking,” which involves renting out part of your property to offset housing costs.
These trends are likely to drive new homebuying patterns in the years to come, and they could create a growing divide between those who own and those who don’t. For example, Freddie Mac points out that Baby Boomers are staying in their family homes longer than previous generations, which means they’re not downsizing to smaller, less expensive condos as they retire. This could reduce the supply of starter homes, which would then push up prices for potential buyers in that age range.
In addition, the boomers’ exit might lead to more inventory on the new-construction side of the market, which would make it easier for first-time buyers to find a place to live in some areas. However, this also might push up prices in other areas of the country that have seen a boom in new construction but lack an equal amount of existing supply.
Despite these challenges, it seems that most Gen Zers remain committed to homeownership, which may help the industry weather these pressures. Regardless, it’s important for agents to stay current on the latest real estate market Gen Z trends so they can serve this growing client base.
While the housing market is changing, it’s crucial to remember that buyers of all ages aren’t created equal. Understanding the unique needs and preferences of each generation can help you tailor your marketing efforts to better reach them. This will ensure that you’re reaching the largest number of potential clients, and it could help your business grow in the years to come.
