How Gen Z’s Approach to Real Estate Could Impact the Housing Market

by EV Atlanta

According to an annual report from the National Association of Realtors (NAR), first-time home buyers were responsible for 32% of all home purchases in 2023, up from 26% the prior year.

However, first-time home buyers had a median age of 35, which indicates that people are waiting longer to enter the real estate market. Per data shared by the Washington Post, home prices have shot up 54% since 2019, making housing unaffordable for someone fresh out of college.

With real estate prices increasing over the last few years, many younger people have accepted that purchasing a home won’t be at the top of their priorities. The combination of high interest rates, low inventory and elevated prices means that members of Gen Z may not be as interested in becoming homeowners.

Gen Z Will Prioritize Lifestyle Over Owning a Home

“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.”

Gen Z may not be in a rush to settle down and purchase a place so that they can become homeowners like other generations did.

They may prioritize lifestyle as they seek to be around the community and involved in careers that they’re passionate about.

The Find World On Future Impact On The Housing Market

“I think it’s important to remember that only three or four years of this generation are reaching an age when homeownership is something they may be considering as the majority are still in high school and college.” Morgan said.

While the stats on Gen Z and home ownership paint the picture that the generation isn’t overly interested in real estate, the key consideration to remember is that many members of this demographic are simply too young to enter the housing market, as they’re still in school.