And they’re off…! Generation Z and Millennials Face a Marathon Housing Race
Ready? Set? It will soon be a neck-and-neck race between Generation Z and Millennials as to which generation purchases the most affordably priced homes the fastest. However, researchers are putting their money down on Generation Z.
Generation Z? “Who are they?” you might ask. This generation was born between 1995 and 2010 placing their oldest members in their early twenties. Although that may seem a bit young to purchase a home, they’ve set their eyes on the prize of home ownership even more so than Millennials. Researchers cite several revealing statistics that this generation means business.
Studies show that members of Generation Z work hard and are exiting their parents’ homes in higher numbers than Millennials to embrace renting. They send out more rental applications than previous generations and spend less time looking for their ideal location. In other words, once they’ve made up their minds, they act fast.
Here are some interesting factoids about Generation Z, they:
Make up 21% of our population
- Are the most ethnically diverse
- Desire communal neighborhood amenities that bring people together
- Prefer living with others than alone
- Will cobble together a down payment for a house from many different sources
- Are flexible and willing to seek housing outside their preferred neighborhood
Homeownership for Millennials in the U.S. is actually at a record low. They are either spending more on renting or still living at home with parents, may still be paying off school loans, and are postponing marriage. However, by delaying purchasing a home, they are placing themselves in much more head-to-head competition with Generation Z when it comes to bidding for and buying affordable housing. As a matter of fact, 57% of Generation Z responded to studies stating that they already considered buying a home while looking for their last rental. Now, that’s planning ahead!
Autum is a Great Time to Buy
Turns out that October is the best month for home buyers to snag a real deal for themselves. Many home buyers drop out of the house-hunting market until after the New Year. So, if your dream home has been on the market all summer – fall is the time to spring into action and land a good price on it. Many sellers are eager to beat the holidays and avoid moving in the depth of winter. As a result, they’ll be more willing to flex on negotiations.
And, because rents are at an all-time high, sellers of affordably priced homes can brace themselves for a flood of excitement once they list from both Millennials and Generation Z. Renters typically face a higher monthly payment than homeowners – a fact not lost on Generation Z who are eager to become homeowners. They fully understand rents will only continue to rise, and a house payment is a much smarter option. So, brace yourself Millennials, the race is on…!!!