Get ready. They may be all about Dank Memes right now, but Generation Z is preparing to enter the housing market over the next few years.
Gen Z covers people currently between the ages of 18 and 25—and while they’re just entering adulthood, many of them already have homeownership on their mind.
According to a recent survey from realtor.com, nearly half of Gen Z respondents (43 percent) said they hoped to buy a home at some point over the next five years. And the rest of their generation isn’t far behind—with another 44 percent planning to buy within five to ten years.
This generation is by and large not in the market yet. However, they already see the financial benefits of investing in real estate. Given how young they are, this level of financial maturity is applaudable.
That’s likely because it can be more financially beneficial to own and build wealth rather than deal with escalating rents each year—and this generation is known to be careful with their money.
And where, exactly, do they plan to buy? According to the survey, the majority of Gen Z buyers (49 percent) are planning to settle in the suburbs. Close to a third of respondents reported planning to buy in urban areas—and 19 percent are planning to put down roots in a rural area, where they can get more space for their investment.
However, they may have to wait on their dreams. For many, job stability is holding them back as they are still in college or just entering the workforce or in entry-level (i.e., lower-paying) positions. Many of these aspiring homeowners would be in the market today if they could afford a down payment.
Many also aren’t in established relationships or having children yet. So it’s hard to plan for the kinds of homes they might need down the line.
