There are some huge differences between generations, and we don’t just mean side parts and skinny jeans. Boomers, Millennials, and Gen Z all have different aspirations when it comes to housing and owning real estate. Understanding how Gen Z feels about real estate isn’t always easy.

While baby boomers are often downsizing from their larger family homes or even now moving in with their older millennial children, younger millennials are prone to eschew homeownership. The homeownership rate among millennials aged 25 to 34 is actually 8 percentage points lower than baby boomers!

How Gen Z Feels About Real Estate & Homeownership

But Gen Z has big aspirations when it comes to homeownership. This generation is twice as likely as previous generations to have bought or want to buy a home before age 25. And 97% claim they want to own a home at some point in the future.

Gen Z is generally believed to be comprised of anyone born in 1997 or later, though the exact years that define the beginning and end of Gen Z differ among research organizations. There are over 61 million Gen Zers with spending power that is continuing to grow. In the real estate industry specifically, they are poised to dominate the industry in the next few years. 

To successfully meet Gen Z’s needs and priorities in the real estate market, it’s helpful to know a little more about them. Gen Zers consider themselves savers over spenders; they are risk-averse and practical. While they have exceptionally short attention spans (about 8 seconds, seriously!), they pay attention to things that matter to them.

“Adulting” for Gen Z means being financially independent, having a full-time job, living separately from their parents, and buying a home. For them, homeownership is also an important part of the American Dream, but they don’t just want to own it, they want to customize it and make it their own. They grew up watching HGTV and YouTube videos, so buying fixer-uppers, or places that require some DIY projects is right up their alley. 

Like most recent graduates, studies show that most Gen Zers would prefer to live in large urban centers, but when it comes to buying their home, they will likely do so in the suburbs. Generally, Gen Z is not looking to live in rural America, though experiences during the health crisis and in the next decade could change this. 

Cost is a major factor for their anticipated suburban purchase, not only because saving for a down payment with student loan debt is difficult and suburban homes are more affordable than city homes, but also because of space. 

Space is a priority for everyone right now, but Gen Zers have always said they considered it a priority when it came to choosing a place to live. However, before the pandemic, they said this space could be a communal space, as this generation prefers to hang out with others rather than being alone in their own homes or condos. 

Like so many these days, Gen Z home buyers are most interested in detached, single-family homes with open-concept layouts and outdoor amenities, like a patio or deck. But the townhome communities in Springfield and Burke would also be great for homebuyers in this generation as they offer the ease, convenience, and more manageable affordability for Gen Zers who also prioritize communal amenities (or at least claimed to before the pandemic). Swimming pools and fitness opportunities are important as are workspaces, maker spaces for hobbies and crafts, and shared entertainment amenities.

Gen Zers don’t typically need large homes to hold a family of multiple kids… yet. They are focused on career and starting families later, and with affordability in mind, are typically interested in smaller homes to start. 

The size of the home appears to be less important to Gen Zers than their investment in the community in which they live. They want to live in communities that look like them, which means racially and ethnically diverse. They prize close proximity to work as well as to friends and family. But they don’t necessarily plan to grow roots in the same community in which they grew up, because they also have travel aspirations.

Over 100,000 Gen Zers already own homes despite being so young, and for a number of factors — not the least of which is their financial savvy and a general desire for homeownership — this generation is poised to dominate the real estate market in the not too distant future.