MORE IN CATEGORY
ADVERTISEMENT
As freshly-minted adults, the oldest of Generation Z are dipping their toes into homeownership. Generation Z does not have the buying power of Millennials or Boomers: Partially due to a lack of funds and partially because of their preference for the Midwest and South, they’re buying homes at prices listed at 25 percent lower than the national average and only putting 5 percent down. Still, they have caught up to the Silent Generation in terms of market share. And unlike the Silent Generation, that share will only increase as the generation ages and starts to form new families.
The first wave of Gen Z homebuyers is here, and they're already proving to be much different from their millennial counterparts. One of the big differences between the two generations: their preferences in housing markets, a new Realtor.com study finds.
For Gen Z, the top housing markets are situated more in the Midwest and the South. In contrast, the top housing markets for millennials are San Francisco-Oakland-Hayward, CA, Boston-Cambridge-Newton, MA-NH, and Denver-Aurora-Lakewood, CO. Realtor.com notes that the notoriously expensive housing markets in these areas have probably shut out Gen Z buyers — at least for now.
The study also found that Gen Z home purchasing power has caught up to that of the Silent Generation (those born before 1946) — both groups hold percentage shares averaging around 2% of the homebuying market. The median price of homes purchased by Gen Zers is $160,000, which is lower than the $256,500 average for millenials. In addition, Realtor.com found that Gen Z is putting around 5% down on their homes and are purchasing properties with listing prices that are 25% less than the national average.
PB Topical Ref
