While more millennials are gradually becoming homeowners, Generation Z isn’t far behind and is already preparing to jump into the market in the near future.
A poll conducted by realtor.com revealed Gen Z-ers are excited about the prospect of homeownership, and some are starting to save up to afford one. The study surveyed more than 3,300 Americans across Generation X (ages 35-50), millennials/Generation Y (ages 25-34) and Generation Z (ages 18-24).
Nearly 80 percent of Gen Z consumers are certain they want to (or already do) own a home, and only four percent of Gen Z respondents are convinced they don’t want to own a home, according to realtor.com.
The report also found that 74 percent of those Gen Z-ers are likely to have started or plan to start saving for a home before they turn 25. To compare, only 33 percent of Gen Y and Gen X respondents said they had been saving for a home.
“Gen Z-ers don’t just want to become homeowners; they want to do it at a younger age and we found that they’re saving or planning to save for it accordingly,” said Danielle Hale, chief economist at realtor.com. “Their desire for homeownership may be similar to that of millennials and Gen X-ers, but graduating into one of the best labor markets in generations might give them the boost they need. Only time will tell if Gen Z-ers are able to achieve their ambitious goals.”
Why are Generation Z-ers so steadfast on owning a home? The top reason is customization. More than 60 percent of Gen Z respondents said they want to become a homeowner because they want to customize their own space. Only 54 percent of millennials and 47 percent of Gen X respondents said that was a reason they wanted to buy a home. That means new construction homes could become more of an appeal to these younger buyers.
Another 55 percent of Gen Z-ers said owning a home is how they want to raise a family. Meanwhile, only 16 percent of Gen Z-ers said they want to become a homeowner because of the tax benefits associated with it.
Gen Z-ers are also slightly more optimistic they’ll receive financial assistance from their family on life’s biggest purchase, although they aren’t banking on it. When asked whether they expected financial help from parents or relatives, 56 percent of Gen Z respondents said “Yes,” or “Maybe.” Meanwhile, only 50 percent of millennials and 41 percent of Gen X-ers showed such confidence.
Generation Z might not be old enough to own a home right now, but there could be an influx of younger home buyers in the market in years to come.
Source: Barbato, Matt. "Generation Z is Already Saving Up for Homeownership." Gateless. 15 November 2018. Web. LINK