What Impact Will Gen Z Have on the Housing Market?
The younger generation prioritizes lifestyle and affordability over homeownership, leaving experts unsure of how this will affect the housing market
July 26, 2024
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Gen Z values community over homeownership.
With home prices increasing 54% since 2019, it's become increasingly difficult for young people to afford homes. And according to GoBankingRates, high interest rates, low inventory, and elevated prices have deterred many young people, especially Generation Z, from prioritizing homeownership. Gen Z might pursue alternative homeownership models, such as co-buying with friends or house hacking (renting out part of their home). Growing up in financial hardship, the younger generation also prioritizes lifestyle and community involvement over homeownership. Because of this, many housing market experts are unclear on what impact Gen-Zers may have on the future housing market.
“As this generation matures, they’ll finalize their career paths and discover cities, people, and opportunities that will shape their early adult lives,” said Sam Morgan, a managing broker at Engel & Volkers Atlanta. “I don’t believe it’s a question of whether Gen Z will become homeowners, but rather what type of home they desire, coupled with the lifestyle they seek.”
