June 24, 2021
A new potential homeowners survey by Realtor.com finds the Gen Z demographic is eager to enter the housing market, albeit in the near future and not today.
What Happened: According to the survey, nearly two-thirds of Gen Zers – individuals between the ages 18 and 25 – said their experiences during the COVID-19 pandemic did not impact their homeownership plans, with more than one-quarter stating the pandemic made them feel even more strongly about buying a home.
Among aspiring Gen Z homeowners, 43% said they planned to become homeowners within the next five years and 44% expected to enter the housing market within the next five to 10 years. Long-term, 49% of future Gen Z homebuyers planned to establish a suburban residency and 19% were looking forward to a rural property, with the remaining one-in-three forecasting an urban city life.
What Else Happened: However, when asked why they weren't buying a home now, half of the youthful respondents said job stability was their barrier. But while only 43% of the Gen Z respondents were currently employed, 45% of those surveyed said they were already saving toward buying a home.
George Ratiu, senior economist at Realtor.com, observed that while this demographic “values homeownership,” time is not their ally at the moment.
“The oldest members of this generation are just entering the professional stage of life and not yet in a financial position to make a big play as first-time buyers – especially in the current housing market, which is challenging even older generations who have had many more years to save for a down payment,” he said.
“With nearly three-quarters of those surveyed preferring to buy versus renting long-term, the housing industry should be prepared for millions of Gen Z buyers to bring a new wave of demand along a similar stage-of-life timeline as the millennial generation before them.”
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