Your next major client pool is coming of age. And it looks like Generation Z (particularly those between the ages of 18 to 24) is eager to get an early start into homeownership: A new study by realtor.com® shows they’re two times more likely than previous generations to be saving for a home by the age of 25.
“Gen Zers 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,” says Danielle Hale, realtor.com®’s chief economist. “Their desire for homeownership may be similar to that of millennials and Gen Xers, but graduating into one of the best labor markets in generations might give them the boost they need.”
Nearly 80 percent of Gen Zers surveyed say they want to (or already do) own a home, which is comparable to millennials and Gen X (both 82 percent). Only 4 percent of Gen Zers are not sure if they want to own a home.
The cost of homeownership is the biggest barrier Gen Z respondents cited. But they aren’t shy about asking their parents for some help. Fifty-six percent of Gen Zers surveyed said “maybe” or “yes” to expecting or receiving financial help from their family. However, Gen Z’s parents may not necessarily have that mindset: According to the survey, Gen Xers were the least likely to expect or have received help from their family (59 percent).
While the study noted that the head start on savings and potential access to family support may prepare this up-and-coming generation to invest in real estate, there’s no guarantee that’s how it’ll roll out. “Only time will tell if Gen Zers are able to achieve their ambitious goals,” says Hale.
To reach this segment of buyers, get acquainted with what they’re looking for in homeownership. The top reasons they cited for driving them to homeownership is to customize their space (61 percent) and to raise their family in a home they owned (55 percent).