We are always hearing about the Millennial generation. What are they doing to influence media, society, or the job market? Why do they eat so much avocado toast? How about their influence on the real estate market? But, what about the next generation?
Generation Z is not far behind Millennials, and they are fast entering the real estate market, according to REALTOR.com©. Here’s what we can expect from the 65 to 75 million young people who are anticipated to begin buying homes within the next five to ten years.
Generation Z is much more financially savvy than Gen X or even their Millennial predecessors. Remember, these young people grew up in the age of the Great Recession. They have seen the mistakes of previous generations, and they don’t want to make those mistakes in their own lives. These people are only in their twenties, and a lot of them are already beginning to save up for retirement. So, you can expect to work with buyers who are less likely to take risks and dive into debt than their predecessors.
Types of Homes
This generation is more likely to avoid the McMansion of yesteryear, and more likely to buy smaller, more economic homes. While young people are willing to buy fixer-uppers (thanks, HGTV), they aren’t willing to go into debt for it. They’ll take their time and save up for the fixes they really want to make rather than spend a ton of money they don’t have. The birth rate is much lower in the US than previous years as well, so the space is simply not needed.
Tech and Social Media
So-called smart houses are growing exponentially in popularity. You can connect everything in your home to one device, thereby having complete control. There are even smart appliances entering the market now which you can connect to the Internet. Generation Z are going to want smart homes that are totally connected at all times. This is the type of development contractors are going to want to look to as they market to younger generations.
So, Generation Z knows how to live within their means, they are more fiscally conservative, and they’re willing to save on space where they can spend on technology. REALTOR©s will want to keep this in mind while looking forward to marketing to the next generation of home buyers, especially since many of these young people are their own children and grandchildren. As always, the real estate market is ebbing and flowing at a phenomenal pace, and we are working to keep up with it; just as we are working our hardest to keep up with this next generation of home owners.