Move over Millennials: Gen Z Enters the Housing Market
It seems that millennials have dominated much of the real estate conversation over the past few years, as their hesitancy to purchase following the economic downturn has gradually shifted toward leaps into homeownership. But now, Inman proclaims that it’s time for millennials to move over, as more and more buyers from Gen Z are emerging onto the market; and according to their estimates, “about 100,000 homebuyers in the current housing market were born after 1995.”
The article notes that Gen Z has largely remained a quiet presence within the market – without the headlines or fanfare that welcomed millennials – but that they are choosing homeownership at a faster rate than their forbearers. One reason is that “Gen Z did not have the same ‘front row seat’ view of the Great Recession that millennials had,” which means they are entering “the market without the same hesitance some millennials have.” Millennials were likely to have witnessed as their parents underwent financial strife, while Gen Z’ers were too young to have been exposed to the issues head on.
A Minneapolis-based broker was quoted as talking about the ways in which this new generation of homeowners understands the financial sense in buying over renting in terms of building one’s own equity and financial future, and the fact that in many cities, the average monthly mortgage payment is comparable and sometimes even less than the average rent. The article also notes that social media and reality TV are shaking things up, as “DIY” shows make learning about investment and home improvement increasingly easier and Gen Z’ers experience “FOMO” they see a friend has purchased a new home on social media, which fuels additional purchasers.