Affordability And Optimism Drive Gen Z Buyers

Affordability And Optimism Drive Gen Z Buyers

While real estate experts have long been focused on the current cohort of millennial buyers, a new generation is quickly arriving on the scene. The oldest members of Generation Z will turn 24 in 2021, and they are ready to make their presence known in the housing market. 

Here are some interesting facts about these potential buyers. 

  • Gen Z is overwhelmingly positive towards homeownership. A recent report from Freddie Mac found that 89% plan to buy their first home by age 30.

  • When looking for a home, Gen Zers value a location that's close to friends and family, their place of employment, and favorite restaurants and retail stores. 

  • According to MarektWatch.com, the median home price for the generation is $160,000 and the average down payment is 5% of the purchase price. 

  • Obstacles to homeownership for Gen Zers include high prices and steep competition for starter homes. saving enough for a down payment and large amounts of student dept. However, they have a strong desire to overcome these hurdles. 

  • While many millennials moved to pricey coastal areas to pursue jobs, remote work may give Gen Zers greater flexibility to settle in less expensive markets.

  • Affordability is top-of-mind for most of Gen Z, leading many of them to midsize markets in the Midwest and South. 

  • According to HouseWire.com, the top three markets Gen Z buyers in 2020 were Salt Lake City, UT; Oklahoma City, OK; and Indianapolis, IN. 

If inventory continues to be as tight as it was in 2020, Gen Z buyers may be tempted to delay their home search; however, the chief economist for Realtor.com says there are benefits in making their move sooner:

"While waiting until the fall or winter months of 2021 may mean more home options to choose from, buyers who can find a home to buy earlier in the year will likely see lower prices and mortgage rates"


Karin Waterschoot-Perez Headshot
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Phone: 614-774-1741
Dated: April 22nd 2021
Views: 320
About Karin: Executive Vice President of Sales Experienced Realtor, Karin Waterschoot-Perez, currently serves ...

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