Gen Z & Home Buying

Gen Z & home buying

 

Being a pretty active New Orleans real estate agent, I read various articles about Gen Z (born 1997 to 2012) and home buying. However, it always appears that the person writing the articles is speculating about what this generation is doing and thinking regarding real estate and buying able to buy a home.

I took this as a personal challenge and interviewed many Gen Z people in various locations nationwide to get their real feedback about whether and when they’re buying a home.

Take a look at what Gen Z said about home buying! I also wanted to note that I only asked these questions to those 18 and older.

 

 

What would be your most important factors if you were looking to buy a home right now? 

This was the first question I posed to the younger crowd. And the answers were all pretty similar! Location, closet space, and price were the overwhelming answers made by this younger group.

We always talk about location in real estate – but these folks were looking specifically for walkability. They noted being able to walk to work, friends’ houses, and restaurants/grocery stores. Gen Z is very conscious about living a more eco-friendly life, and they don’t want to get into a car to go everywhere. (This is when I wish we were set up more like Europe! Great public transportation and easy ways to grab fresh food nearby)

Closet space came up in almost every answer, too! Gen Zer Baylie said she needs a closet for her 100 pairs of shoes. However, we all know in old New Orleans homes, that closet space will be very minimal. Y’all better get some storage bins!

 

 

Are you considering buying a home soon? If not, why?

Again, most of these questions were answered the same way – with the majority saying no, they were not looking to buy a home any time soon. However, the reasons did vary.

Some noted they were in college, so this wasn’t something they were focused on. Others noted they weren’t financially stable or that the housing market was too expensive. Audrey, age 21, said that her friends weren’t looking to purchase because they didn’t know what area they would live in the long term. Long-term living resonated in a few responses as many seemed to be looking for job locations across the country.

 

 

Gen Z and real estate

 

 

If you already own a home, how did you make a purchase, and what was your age? 

Out of everyone interviewed, I only had four Gen Zers who had purchased homes. The ages they purchased were 22, 23, and 24.

Three of our homeowners, all female, noted they saved money and did not have financial help from their parents.

Gen Zer Ashley stated she’s been saving money her whole life, so having the money to purchase a home didn’t seem like a big deal. She also said that being 22 and buying a home didn’t feel abnormal to her. If anything, she thought she was late to the game!

Another Gen Zer, Emma, commented that she has a good job and has saved money. She also completed all her renovations herself.

Our only male interviewee who owned a home mentioned that his parents helped him financially with his home purchase. However, he had friends help with renovations, and he currently rents his other bedrooms out to help pay the mortgage down faster.

 

 

If you don’t own a home now, are you concerned that you won’t be able to buy one in the future?

Woof. The answers to this question made me sad for our future!

Most of the interviewees noted that they weren’t sure they would ever be able to afford to buy a home. Some expressed concerns about needing very high-paying jobs to ever make this goal obtainable. Gen Zer Megan said, “Owning a home seems very unrealistic.” Another commented about the cost of living going up too much. My personal favorite, though, was Gen Zer B stating, “I hope to get bequeathed a house by a lovely old lady with no family and a huge estate.” (SAME, FRIEND, SAME.)

 

 

In all of the 20-something interviews I did, my favorite quote was, “Who tf is Gen Z and buying a house?!” Hearing so many of this younger generation say that they felt homeownership may not be something they can ever obtain due to student loan debt and the cost of housing and living right now was a little disheartening. (Please know many people buy homes with student loan debt!) 

As someone in the real estate industry for over a decade, I am hopeful that everything changes and that more of our Gen Zers will be able to make homeownership a reality one day!

 

No matter your age, if you’d like to explore owning a home, here at Be New Orleans, we are dedicated real estate agents who fight for everyone. We would love to help you begin your journey.

 

 

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