Buying a house in the last few years has seen some dramatic shifts, to say the least. However, the younger generations are still taking the plunge, despite the challenges of the market. Although Gen Y, also referred to as millennials, and Gen Z have similarities, there are a few variations in what they want in a home. Below is a brief look into what these age groups have in common as well as their differences in terms of settling down.
First, what are some aspects of home-buying both groups share? For starters, the majority of them want to own sooner, rather than later. A 2021 survey found 21% of Generation Z adults were planning to buy a home in the next 12 months. Many of the generation are still too young to afford a house, but an overwhelming majority, 87%, intend to buy before they hit 35 years of age. Millennials already make up the largest portion of home buyers and purchased 14% of homes sold from mid-2019 to mid-2020.
Another commonality is their desired home-buying location. Both groups are looking to purchase in suburban areas with convenient access to highly rated public schools, well-kept parks, shopping and entertainment. The lures of the suburbs also include affordability and private outdoor space.
Both generations love smart home technology as well. Gen Zers are digital natives, having always had the Internet and smart phones in their lives. Millennials also grew up with tech designed to make their lives easier and more connected. As such, both place the importance of streamlined, convenient smart home devices very highly on their wish-lists.
How do the two generations differ? Gen Zers place more significance on communal spaces and amenities than their older counterparts. Many are more open to alternative co-living arrangements and tiny homes. They also regard dedicated workspace for a “side hustle” as a huge plus. Well-versed in the realities of the current gig economy, real estate agents and builders can expect Gen Z buyers to want a workshop, craft room, design studio or hobby room of sorts in their dream home.
As for millennials, they put a lot of stock in functionality over square footage. They desire a mindful, open concept with features allowing a seamless transition from indoor to outdoor living as well as entertaining. In fact, these buyers prefer upgraded entertainment-related rooms over bedrooms and bathrooms, as they love company. Gen Y also values protecting the environment. Sustainable building materials, energy-efficient appliances and home filtration systems are very popular with younger buyers.
As more and more of these younger generation buyers start their home search, we’ll likely see a heavier reliance on social media marketing and realty app usage. Such convenient resources facilitate enhanced search options, thus allowing prospective buyers to find exactly what they’re looking for in a home.
For a side-by-side comparison of Gen Z and Gen Y home-buying desires, please see the accompanying resource, by Renovo Financial.
This infographic was created by Renovo Financial, asset based lenders
