Gen Z: The future of homeownership

The age group dubbed “Gen Z” is making its entrance into the housing market

Keep your eye out: Gen Z is on the hunt for homes. Born between 1997 and 2012, many Gen Zers are beginning to graduate college and join the workforce. With this comes the desire to settle down in a place all their own, without having to deal with landlords and monthly rent.

With pandemic graduations, student loan debt and limited resources, affordability may be the major obstacle between Gen Z and their dream homes. Job stability at a young age is also a major concern, but where many millennials feared they would never be able to buy a house due to money and job concerns, these issues do not seem to be tamping down Gen Z’s hopes. According to a survey, 72% of Gen Z would like to own a home someday, and 45% are currently saving up for one.

Location, location, location

The largest share of mortgage requests from members of Gen Z in the U.S. is concentrated in Salt Lake City, Utah. Salt Lake City has a predominantly young population, with the median age at only 33.6, five years younger than the current U.S. median of 38.8. Some other cities with younger populations buying houses include Houston and Austin, Texas; Columbus, Ohio; and Seattle, Washington.

Part of the reason there are so many young people living in these cities and driving the housing market is because of large tech industries. According to Builder Online, 51% of Gen Z see tech as a viable career path for them, drawing them to these cities to look for work.

Embracing remote work and suburban living

Another major reason many Gen Zers are beginning to look for homes is because of the post-pandemic lifestyle shift. As they began to look for work in the middle of the pandemic, when everything was remote, they are used to working from their homes or apartments. More and more Gen Zers are continuing to prefer remote work, where they can stay in the comfort of their homes.

However, this requires a large space where they can live and work at the same time. Since their commute is only to the desk in the next room, they’re interested in moving out of the city and into the suburbs, where they can settle down and begin to build their own lives.

Gen Z is the future of homebuying. This is a generation dedicated to building a comfortable life for themselves and their loved ones, and it begins with owning the home of their dreams.