Most of the attention in the real estate market in recent years has been focused on millennials and for good reason. This demographic, born between 1981 and 1996, represents the largest cohort of buyers in the real estate market. With this said, Generation Z (currently aged 18 to 25) is about to start entering the market over the next few years. We discuss some of the characteristics from a recent survey conducted on this demographic below.
To buy or to rent?
Realtor.com recently conducted a survey of more than 700 members of Generation Z, who haven’t yet bought homes. This survey was conducted from March 26th to April 7th, 2021 and provided some interesting insights into this group.
Known as a cost-conscious generation, more than three-quarters of those surveyed expressed a preference to own a home rather than rent one. It seems as though a majority of Generation Z realizes that home ownership is an effective way to build wealth, while escalating rental amounts make it challenging to do so.
As for timing, Generation Z does not appear to be wasting any time. Of those surveyed, 43% plan to purchase their first home within the next 5 years. As for within the next 10 years, another 44% of respondents stated they planned on purchasing a home within this time frame.
Big city, suburbs, or rural?
Another interesting finding from this survey is that Generation Z is not particularly tempted by the bright lights of the big city. (This is a stark contrast from their older peers, the millennials.) Known to be a cost-conscious group, many of these future home buyers would opt for locations other than the expensive, big city. In fact, only 1/3 of respondents expressed an interest in urban life. Meanwhile, approximately 49% of respondents stated they would want to live in the suburbs. As for rural areas, 19% of respondents expressed an interest in moving as far away from the big city life as possible.
Although Generation Z has largely not entered the real estate market yet, many have already observed the financial benefits of investing in real estate. Given how young they still are, this level of maturity is certainly to be applauded. Many believe that this generation has learned from many of the millennials that have migrated to big cities only to pay high rents, and now a decade later are not able to afford their first home purchase.
The good news is that the majority of Generation Z has not been intimidated from home ownership due to the recent pandemic. In fact, two-thirds of respondents stated that the pandemic did not affect their desire for home ownership whatsoever. The biggest challenge for many of these future home buyers will be saving enough money for a down payment.
Are you looking to buy or sell property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. At Live South Florida Realty, Inc., we have been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!