The newest generation of consumers is stepping into the home-buying scene—Generation Z. Although the characteristics and preferences of this generation (born between 1999 and the early 2010s) are still evolving, a segment is already actively buying and selling real estate.
According to the National Association of REALTORS®’ (NAR) 2023 Home Buyers and Sellers Generational Trends Report, the share of Gen Z aged 18 to 23 made up 4% of buyers and 3% of sellers last year.
As more Gen Zs enter adulthood, their demand for housing will continue to increase. Learning what appeals to Gen Z homebuyers and striving to connect with them now will give savvy real estate agents an advantage in serving this market segment as it grows.
According to NAR’s data, Gen Z buyers aged 18 – 23 generally…
- are single females (31%) and married couples (30%);
- are child-free (91% do not have children residing in the household); and make less than $100,000 (85%)
Notably, 30% of Gen Z buyers moved directly from their family member’s home into homeownership—avoiding the rental market altogether. A location convenient to friends/family was most important when buying a home.
As far as this generation’s characteristics and preferences, 2023 Home Buyers and Sellers Generational Trends Report research shows that as a group, they are digital natives, hyperconnected, racially and ethnically diverse and environmentally and socially conscious. For housing, they tend to prioritize affordability, convenience, sustainability and community amenities.
To understand and connect with the next generation of homebuyers, real estate agents should:
Do your research
Stay updated with the latest trends related to Gen Z homebuyers. Here are a few resources that will help you better understand their preferences, values and behaviors:
Expand tour online presence
Adopt a digital-first approach to marketing. Ensure that your website and all communications and tools are mobile-friendly with easy navigation and interactive features. Regularly utilize social media platforms and short-form video to showcase properties, provide virtual tours and share informative, entertaining and transparent content.
Authentically embrace causes they care about
Demonstrate your commitment to making a difference by embracing social and environmental causes that genuinely resonate with you and align with Gen Z’s values. By incorporating these strategies into your approach, you can position yourself as a knowledgeable and trustworthy real estate authority and effectively connect with Gen Z buyers as they increasingly enter the housing market.
For more information, visit https://crd.realtor/.