How Gen Z Buys Homes Differently
A new generation of hopeful homeowners is about to enter the real estate world: Gen Z. Also known as ‘zoomers’, those born between the late 90s and early 2000s are already thinking ahead to how they’ll buy their first homes in a rapidly changing market.
In the zoomers vs. millennials line of thinking, the logic is pretty different.
Where some millennials have adopted a ‘forever renter’ status, more than 86.2% of Gen Zers want to purchase a home, with nearly 45% looking to purchase their first home in the next 5 years, according to Rocket Homes. Many are already saving for their down payment in hopes of completing the Gen Z home ownership journey. Ahead, we take a closer look at what makes this generation so unique and what they expect out of their future Z homes.
What Is a ‘Zoomer’?
This excerpt from Merriam Webster defines a zoomer as, “in the newest use of the word, a member of Generation Z, the generation of people born in the late 1990s and early 2000s. The zoomers follow the millennials (also known as Generation Y), who follow the Gen Xers, who follow the Baby Boomers.”
So what are these 9-24 year olds like, generally speaking?
- They stand up for causes they believe in.
- They operate in and fight for their communities.
- They may have student loan debt.
- They may underestimate the cost of homeownership.
- They’ll pay more for better service or sustainable products.
- They prefer everything to be digital.
- They read reviews religiously.
- They would rather watch a video tutorial to make complex processes more efficient.
Gen Z and Homes
When it comes to becoming first time homeowners, generation Z has some specific criteria. Here’s a snapshot from a Homie national survey about how they approach the homebuying process:
- 67% said they would consider using an online service or app to buy a home compared to 39% of millennials.
- 44% of participants said they are willing to spend $150-$250K on a home, which is much less compared to other generations (as well as the national average).
- 57% of participants said they are willing to put down 3-5% on a home, while 53% of millennials are willing to put down less than 15% on a home.
- 46% of participants said a new job, growing family, or relocating was the number one reason for wanting to purchase a home.
- When searching for a real estate company to buy or sell with, 33% of participants said technology is the most important factor.
Speaking of technology, many Gen Zers also prioritize smart homes in their search. A high-tech home may be more important to this generation than previous generations. The home automation features included in the smart homes at Pecan Square by Hillwood in Northlake, Texas are just the type of attributes Gen Z shoppers will value highly when searching for a new home.
All Pecan Square homes come with the Canopy technology bundle, which includes super speedy half-gig internet, an Amazon Echo Show, a Ring Video Doorbell and full coverage WiFi throughout the home at move-in. The Pecan Square new home community also has a lifestyle app powered by Alosant that residents use to stay connected and browse the community calendar, reserve venues and more.
With an “experience over things” mindset, prospective Gen Z homeowners will also be excited about the hundreds of community events that happen at Pecan Square, including parties, fitness classes, childrens’ activities, craft workshops, community markets, weekly rotating food trucks on-site, and more.
Additionally, Pecan Square’s location – between Fort Worth and Denton just off I-35W –is in one of the fastest growing areas of North Texas. Convenient to DFW airport, the Alliance Texas employment center, several major universities, and numerous health care facilities, the community is in one of the fastest growing areas of North Texas. Plus, Pecan Square’s proximity to the big cities of Dallas and Fort Worth offers employment opportunities and entertainment and retail businesses, making it a strong option for soon-to-be buyers.
Z Trends FAQ:
Are Gen Z buying houses?
Though 77% of Gen Zers still believe that homeownership is “at least somewhat attainable”, many are still coming of age and saving for their future homes and down payments.
Will gen Z be able to afford houses?
Yes! The more you save now, the sooner that dream can be realized. Putting away a couple hundred dollars every month and saving diligently is a great strategy!
What percentage of Gen Z own a home?
Gen Z now holds a 2% share of the housing market, according to Realtor.com’s Generational Report. That’s only expected to continue as more enter the workforce.
Tour Pecan Square by Hillwood Today
Pecan Square by Hillwood has high-quality new construction homes for every generation, from Gen Z to Baby Boomers. Our award-winning community has an inspired collection of amenities and hundreds of unique events, classes, and activities that offer residents recreation, entertainment, and convenience. Visit us at The Greeting House to start your home buying journey.