Gen Z and Millennials: Shaping the Future of Homebuying
The future of homebuying is constantly evolving, and two generations that are shaping this change are Gen Z and Millennials. As the largest generations in the United States, both Gen Z and Millennials have a significant impact on the real estate market. With different priorities, values, and preferences, these young homebuyers are redefining the traditional homebuying process. From technology to sustainability, let’s explore how Gen Z and Millennials are shaping the future of homebuying.
Technology is the new norm
Gen Z
For Gen Z, technology is not just a luxury, but a necessity. Growing up in a digital age, they are accustomed to having everything at their fingertips. This is no different when it comes to homebuying. Gen Z homebuyers are always connected, and they expect to be able to do everything online, from property research to virtual tours and even signing contracts.
In fact, a recent study by the National Association of Realtors found that 98% of Gen Z homebuyers will use the internet during their home search, and 71% of them expect to utilize virtual and augmented reality to view properties. This means that real estate agents and homebuilders must adapt to this tech-savvy generation by offering online resources and incorporating technology into the homebuying experience.
Millennials
Similarly, Millennials are also highly reliant on technology when it comes to homebuying. This generation is known for being tech-dependent, and they have been quick to adopt new tools and apps that simplify the homebuying process. With busy lifestyles, Millennials appreciate the convenience of scheduling home showings and completing paperwork online.
But it’s not just about convenience for Millennials. They also value sustainability and eco-friendliness, and technology plays a significant role in this. From energy-efficient appliances to smart home systems, many Millennial homebuyers are willing to pay more for a home that helps reduce their carbon footprint.
Location is key, but not in the traditional sense
Gen Z
Traditionally, location has been a top priority for homebuyers. However, for Gen Z, the definition of a desirable location is changing. This generation prioritizes accessibility and convenience over a specific neighborhood or city. They value shorter commutes and easy access to public transportation, making urban areas with a mix of residential and commercial spaces more appealing.
Moreover, Gen Z is more likely to prioritize amenities over neighborhood reputation. For example, they may choose a smaller home in a walkable community with access to recreational activities and co-working spaces over a larger home in a suburban area.
Millennials
For Millennials, location is still essential, but they are looking for more than just a place to call home. They prefer areas that offer a sense of community, with access to entertainment, culture, and social events. This generation is also known for valuing work-life balance, and they often prioritize locations near their workplace or within a reasonable commute time for a better quality of life.
Eco-friendliness and sustainability are top priorities
Gen Z
Environmental concerns are at the forefront for Gen Z, and they are willing to put their money where their values are. This generation is passionate about protecting the planet, and they expect the same from the homes they purchase.
According to a study by the National Association of Home Builders, 94% of Gen Z homebuyers are willing to pay more for a home that is energy efficient and environmentally friendly. This includes features such as solar panels, energy-efficient appliances, and sustainable building materials.
Millennials
Millennials have also shown a significant interest in environmentally-friendly homes. A survey by the National Association of Realtors found that 78% of Millennials are concerned about the environment, and 61% are willing to pay more for a home with eco-friendly features.
This generation also values sustainability in other aspects of their home, such as the use of renewable materials, efficient heating and cooling systems, and water-saving fixtures.
The rise of co-living spaces
Gen Z
A relatively new trend in the real estate market, co-living spaces are gaining popularity among Gen Z. This generation is known for being social and prioritizing experiences, making shared living spaces an attractive option.
Co-living spaces offer affordable housing in desirable locations, with the added benefit of built-in communities. They often come with amenities like shared kitchens, workspaces, and social events, making it easier for Gen Z homebuyers to connect with others and build a sense of community.
Millennials
Similarly, Millennials are also drawn to the co-living trend. With high levels of student debt and a desire for flexibility, many Millennials see co-living as a more viable and cost-effective option than traditional homeownership. This generation values the sense of community, socialization, and convenience that co-living spaces provide.
However, while co-living may appeal to many Millennials and Gen Zers, it is still a relatively new concept, and it remains to be seen how it will continue to shape the future of homebuying for these generations.
Overall, Gen Z and Millennials are bringing new expectations, values, and preferences to the real estate market. As the largest generations in the country, their impact is undeniable. From technology to sustainability and community, these young homebuyers are redefining the future of homebuying, and it’s up to the real estate industry to adapt and cater to their needs.
