Gen Z May Prove to Be Serious Competition for Millennials in Housing
September 5, 2018
Generation Z is being categorized as optimistic when it comes to real estate investments, and it's showing a lot of interest in homeownership despite their young age, according to a new generational survey of more than 2,000 renters, owners, and those living with families conducted by PropertyShark.com, a real estate website. Generation Z includes those who were born after 1995.
Eighty-three percent of Gen Z respondents surveyed say they plan to buy a home within the next five years. And they’re not letting their youth stand in the way. About 100,000 Gen Zers are reportedly already homeowners, even though the oldest Gen Z is just 23 years old, the survey found. Those who are already homeowners are less likely to default on their mortgage than baby boomers, millennials, or Gen X mortgage holders too.
Gen Z is proving to be much more optimistic about homeownership than its older peers, the millennials. However, they do agree with millennials that “college debt” is the number one obstacle that could delay them from becoming homeowners.
As real estate buyers, they could be easy to work with: They dream of plenty of space and amenities, but they say they’re ready to compromise on almost anything to keep their costs to a minimum, the study finds. They show a fondness for suburbs (60 percent say they prefer it), followed by urban living at 30 percent.
“More Optimistic Than Millennials, Gen Z Is Here to Revolutionize the Housing Market,” PropertyShark.com (Sept. 4, 2018)
Updated: December 14, 2018