What Millennials And Gen Z Look For In Today’s Housing Market

Purchasing a home in the last couple years has seen some considerable shifts, to say the least. However, the younger generations are still forging ahead, despite the difficulties of the market. Although Millennials and Gen Z have similarities, there are a few variations in what they look for in a home. Below is a quick look into what these age groups have in common as well as their differences when it comes to settling down.

What are some aspects of home-buying both groups share? For starters, many of them want to own a home sooner, rather than later. A 2021 survey found 21% of Generation Z adults were planning to buy a home within the next year. While much of the generation is still too young to afford a house, an overwhelming majority, 87%, intend to buy before they’re 35 years of age. Millennials currently make up the largest portion of home buyers and have already purchased 14% of homes sold from 2019 to 2020.

Another similarity is their desired home-buying location. Both groups are looking to purchase in suburban areas with easy access to highly rated schools, well-maintained parks, shopping, and entertainment. The attraction of the suburbs also includes affordability and private outdoor space.

Both generations love smart home technology as well. Gen Zers are digital natives since they’ve always had the Internet and smart phones in their lives. Millennials also grew up with technology designed to make their lives easier and more connected. Both generations place the importance of streamlined, convenient smart home devices very high on their home wish-lists.

Now how do the two generations differ? Gen Zers place more importance on communal spaces and amenities than their older counterparts. Many are more open to alternative co-living arrangements and tiny homes. They also consider 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 ideal home.

On the other hand, millennials put a lot of stock in functionality over square footage. They look for 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 rooms over bedrooms and bathrooms, as they love company. This generation also values protecting the environment. Sustainable building materials, energy-efficient appliances and home filtration systems are very popular with this generation of buyers.

As more of these younger generation buyers enter the home search, we’ll likely see a heavier reliance on social media marketing and realty app usage. Such convenient resources facilitate advanced search options, thus allowing prospective buyers to find exactly what they’re looking for in a home.

For a better comparison of Gen Z and millennial home-buying desires, please see the accompanying resource, by Renovo Financial.