We seem to know and hear all about Millennial's, with their avocado toast and indifference to anything traditional. Yet, there's a new demographic already creating an impact on the market. What do any of us know about "Generation Z?"
The facts and research may astound you, and this will surely effect the future of real estate across many platforms.
Who is Gen Z? This dynamic group includes those who were born between the years 1995 to 2010- from young kids to those in their early 20's. Their attitudes and outlook on life differ greatly from Millennial's which is already proving apparent in their buying patterns, preferences and reactions to marketing on all products and services.
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Read below for the top 3 differences between Generation Z and Millennial's in Real Estate:
1. Valuing Home Ownership
Most Millennial's aren't worried about buying and owning a home at an early age. They either wait until they are older and more established or they don't make it a highly esteemed goal. Many Millennial's would choose backpacking through Peru over owning a small home in the suburbs. The same cannot be said for Generation Z. 83% of young adults in Generation Z want to own a home in their early 20's and plan on making it a serious focus. We are already seeing this pattern come into place with the earliest born in Gen Z and they are paying their mortgages on time. Financial stability is also a big difference between the two groups, with Millennial's spending more frivolously and Generation Z saving more money.
2. Land and Lifestyle
Millennial's are generally more attracted to urban areas, valuing walkability and close proximity to friends over anything else. They are willing to live in smaller spaces in community buildings to have a specific lifestyle that is both efficient and modern. Generation Z is proving to have an opposite preference with the latest market research. This group values lots of land and big open spaces more than metropolitan living quarters-and do not mind commuting longer distances to have it. Millennial's seem almost allergic to the suburbs while Generation Z might prefer it, as long as it meant more land ownership, tranquility and privacy.
3. Move in Ready
Generation Z will provide a welcome financial boost for Home Depot and other home improvement companies. This young generation puts a priority on saving and money spent thoughtfully. They are not afraid to buy a "fixer upper" and no DIY project is too intimidating for them. Having this attitude will surely gain them more equity in a home purchase. Millennial's, on the other hand, only want "move in ready" homes and prefer that a property be flipped before they purchase.
Our advice: If you are a Millennial and do hope to own a home someday, it would be wise to buy a property before Generation Z infiltrates the housing market. Why? The competition is about to get a little more stiff, and you will wish you had already made the investment.
If you are interested in buying your first home and don't know what your options are, contact us now for a free phone chat! We would love to share our knowledge with you and connect you with one of our experienced lenders. Or email us at: email@example.com