Gen Z: The Next Generation Is Making Moves in the Housing Market

<article class="post-784502 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-784502"><span class="entry-date">August 28, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">Gen Z: The Next Generation Is Making Moves in the Housing Market</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Gen+Z%3A+The+Next+Generation+Is+Making+Moves+in+the+Housing+Market&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fgen-z-the-next-generation-is-making-moves-in-the-housing-market%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Gen Z: The Next Generation Is Making Moves in the Housing Market Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20230828-Gen-Z-The-Next-Generation-Is-Making-Moves-in-the-Housing-Market.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>Generation Z (Gen Z) is eager to put down their own roots and achieve financial independence. As a result, they’re turning to <a href="https://www.simplifyingthemarket.com/2023/07/04/americans-still-view-homeownership-as-the-american-dream/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homeownership</a>. According to the latest <a href="https://www.nar.realtor/sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf" rel="noopener noreferrer" target="_blank"><em>Home Buyers and Sellers Generational Trends Report</em></a> from the <em>National Association of Realtors</em> (NAR), 30% of Gen Z buyers transitioned straight from living under their parents’ roofs to owning their own homes.</p>
<p>If you’re a member of this generation, and you’re interested in pursuing your own <a href="https://www.simplifyingthemarket.com/2023/08/02/how-to-know-if-youre-ready-to-buy-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">dream of homeownership</a>, here’s some information you may find helpful on why and where your peers are buying.</p>
<h4><strong>The Reasons Gen Z Want To Become Homeowners</strong></h4>
<p>A recent survey by <em>Rocket Mortgage</em> <a href="https://www.rocketmortgage.com/learn/gen-z-home-buying#:~:text=Of%20those%20surveyed%2C%2034%25%20said,eager%20to%20establish%20a%20household." rel="noopener noreferrer" target="_blank">identifies</a> some of the top <a href="https://www.simplifyingthemarket.com/2023/06/02/reasons-to-own-your-home-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">motivators</a> driving Gen Z buyers to purchase a home:</p>
<blockquote><p><em>“</em><em style="color: rgb(28, 27, 26);">Of those surveyed, </em><strong style="color: rgb(28, 27, 26);"><em>34% said that starting or growing their family was their main motivation</em></strong><em style="color: rgb(28, 27, 26);"> to buy a home. . . .</em><em> </em><em style="color: rgb(28, 27, 26);">Along with growing a family comes establishing a home base.” </em></p></blockquote>
<p>Another key reason the survey says Gen Z wants to buy is because <a href="https://www.simplifyingthemarket.com/2023/05/24/owning-a-home-helps-protect-against-inflation/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homeownership</a> can give them more stability (20.8%). That’s because buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost.</p>
<p>When you have a fixed-rate mortgage on your home, you can lock in your monthly payment for the duration of your loan, often 15 to 30 years. If you keep renting, you don’t have that same benefit, and you won’t be protected from rising housing costs.</p>
<p>So, if you’re ready to start a new chapter in your life or if you’re craving more <a href="https://www.simplifyingthemarket.com/2023/07/21/real-estate-continues-to-be-the-best-investment-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">stability</a>, know that your peers feel the same way, and those motivators are why they’re turning to <a href="https://www.simplifyingthemarket.com/2023/07/20/owning-your-home-helps-you-build-wealth/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homeownership</a>.</p>
<h4><strong>Gen Z’s Next Stop: Where Are They Making Their Moves?</strong></h4>
<p>If those reasons have you feeling ready to buy, here’s some information on <a href="https://www.simplifyingthemarket.com/2023/08/14/where-are-people-moving-today-and-why/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">where</a> your peers are finding their homes that could help you with <a href="https://www.simplifyingthemarket.com/2023/08/17/people-want-less-expensive-homes-and-builders-are-responding/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">your search</a>. According to a recent <em>Lending Tree</em> <a href="https://www.lendingtree.com/home/mortgage/the-most-popular-us-cities-for-gen-z-homebuyers-ranked/" rel="noopener noreferrer" target="_blank">survey</a>, Gen Z buyers are focusing on more affordable areas to help boost their buying power and offset the challenges that come with today’s <a href="https://www.simplifyingthemarket.com/2023/08/03/how-inflation-affects-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage rates</a>.</p>
<p>Many Gen Z buyers still want the convenience and excitement of city life, but also value the affordability, open air, and space more suburban areas offer. Jacob Channel, Senior Economist at <em>LendingTree</em>, <a href="https://www.nytimes.com/2023/06/15/realestate/gen-z-home-buying.html" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p>“<em>. . . they want to live in a city, but they also want to be close to nature</em>.”</p></blockquote>
<p>Locating a home that offers both of those things requires expertise. Working with a trusted <a href="https://www.simplifyingthemarket.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">real estate professional</a> can help you find a home in your budget and desired area. Your agent will know the most affordable neighborhoods to search in. They can also highlight the amenities and features that location offers and how those are aligned with <a href="https://www.simplifyingthemarket.com/2023/07/03/evaluating-your-wants-and-needs-as-a-homebuyer-matters-more-today/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">your goals</a>. They’ll also be able to walk you through how things like <a href="https://www.simplifyingthemarket.com/2023/07/13/how-remote-work-expands-your-homebuying-horizons/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">remote work</a> can help you cast a broader net for <a href="https://www.simplifyingthemarket.com/2023/07/26/tips-for-making-your-best-offer-on-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">your search</a>. </p>
<h3>Bottom Line</h3>
<p>If you’re a member of Gen Z and are just getting started on your homebuying journey, or if you want to learn more about the process, it’s important to connect with a trusted real estate agent. Their expertise will guide you to a home that fits both your lifestyle and your budget.</p>
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