Generation Z is here, are we prepared for the next generation of homebuyer?
Ahhh millennials… The generation seemingly known for avocado toast, selfies and participation awards. Joking aside, it seems like we know all we need (or want) to know about this trend-setting generation.
But what do we know about Generation Z? What can Arizona REALTORS expect from nearly 26% of the U.S. population? They’re more than just emojis, YouTube and Doritos. How are they different from Gen Y? From floppy disks to flip phones, lets take a quick look at the next generation of potential homebuyers.
Depending on who you ask, GenZers were born somewhere from the mid-1990s to 2011. That means they were the first generation to grow up with the internet being a daily part of their lives. In fact, it’s been reported that more than 90% have a digital presence. As the oldest among this generation begin to enter the workforce, are they looking to purchase a home? What’s their financial situation and attitude towards working with a realtor?
According to a recent study by Homes.com:
87% expect to buy their own house before 35.
With nearly 90% of Gen Z optimistic about the future, they are more likely to aggressively pursue entrepreneurial opportunities and affordable housing markets. Add in the likelihood of several sources of income from a new-style “gig economy,” connecting with this new customer will be different than the more skeptical millennial homebuyer.
They want to make enough money to afford a home but saving for a down payment is secondary.
21% of Gen Z is confident their parents will help them out with a down payment towards a home. While its been reported that new workers are better off than they were a decade ago, the increasing costs of owning a home concerns Gen Z more than saving for the down payment.
Gen Z buyers want real estate agents who understand what they want and the local market.
Not exactly shocking news, but Gen Z wants to work with realtors who understand what they want and the local market. Connecting their needs with the neighborhood will resonate with every client and Gen Z isn’t much different.
90% plan to work with an agent.
Even in a world of increasing ibuyers, nine out of ten GenZers anticipate working with a real estate agent. Jokingly referred to as having learned how to swipe before learning how to speak, successful realtors understand this group is more heavily reliant on technology than any other generation before them.
Proximity to work #1 on list of desired criteria.
Multiple studies have shown that Generation Z is more interested in the distance to their job than settling in a preferred neighborhood. In fact, according to the study, 71% said proximity to work was their primary concern with distance to friends/family (52%) and crime (46%) falling a distant 2nd and 3rd behind.
Gen Z has higher expectations than millennials and they are big on individuality. They’re accustomed to engaging and efficient technology and have grown up expecting businesses to adapt to their specific needs and aspirations. They are seeking NextGen housing, open to fixer-uppers, buy a home even though they have a student loan, and will compromise on many things as long as they cut costs.
As a realtor, communicating with this group needs to be personal, digital and unique to the individual. Understanding this generation’s trends, technologies and expectations will help us stay ahead of the curve when connecting with the next group of homebuyers.
Tags: generation z; millennial; economy, new buyer