I created this post out of curiosity about my generation (I'm 19) and our current and future footprint in the world of homeownership and real estate in general. The millennials get a lot of attention, but the next wave of homebuyers that real estate agents, property managers, investors, and landlords should be aware of is Gen Z. Welcome to our world.
Who is Generation Z?
Generation Z (aka iGen, Gen Z) was born between 1997-2012. If you're not the sharpest, they're currently 8-23. Gen Z is the most ethnically-diverse generation to date, making up roughly 20% of the United States population (about 67 million). We are known for being tech-addicts and having an Instagram profile before we could crawl. This means your property manager will need to be social media savvy to acquire tenants in a hot area. Also, we are the generation who are "social justice warriors." A good name with credibility will only take you so far; we want to see your company's community engagement and diversity.
Why is Gen Z important to the real estate market?
I'll start this off with data from Mr.Freddie Mac himself "Gen Z views homeownership as having a more positive perception of what it means to own a home than Millennials at the same age. They estimate that they will attain this goal by the time they turn 30 years old, three years younger than the current median homebuying age (33)". The older half of our generation is eager to break into the housing market and own a home. We haven't really been through a cycle per se, but we may have faint images of what happened. Personally, the ONLY image of the 2008 crash (I was 8 at the time and in Las Vegas) that I remember is glancing over at the TV, and John Huck of Fox 5 news was talking about houses with a big Foreclosure image next to his face. That's all I needed to know...
Our current slice of the pie.
The Gen Z share of mortgages was 2% at the end of 2019. The median price of a home purchased by Gen Z buyers is $160,000, lower than $256,500 for millennials but growing more quickly. Gen Z is also putting an average of 5% down. Gen Z is here to stay, but everything isn't so sweet and dandy. The current problems we face as a generation is rising housing prices, saving for a down payment, and student debt. Though we do have these challenges, I am optimistic about our future in homeownership and the legacy we will build through the great power of real estate.
If you are a Gen Z, Gen Y(millennial), Gen X, Baby Boomer, Silent Generation, feel free to connect and follow me on Instagram. I occasionally post educational videos about Real Estate and will soon have multifamily deals.
Happy Holidays,
Greg Oliver III
