Housing Trends Among the Generations: What Is Gen Z Actually Looking for?
Written by
Cynthia Measom
Edited by
Zuri Anderson
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According to the National Association of Realtors 2024 Home Buyers and Sellers Generational Trends Report, in 2024, the share of Gen Z homebuyers and sellers between 18 and 24 consists of 3% of buyers and 2% of sellers.
Members of the generation are becoming homeowners with the lowest household incomes. Additionally, they are unlikely to be married or have children under 18 in their homes. They also purchase older homes than most other buyers.
Here’s more about Gen Z and housing trends.
What Is Gen Z Looking for in a Home?
Jenna Stauffer, global real estate advisor at Sotheby’s International Realty, said that Gen Z is looking for housing that fits their lifestyle.
“They are focusing more on affordability, flexibility and convenience,” she said. “Cost is a huge concern in today’s market for this generation.
“There are many Gen Z buyers opting for smaller spaces or shared living arrangements because of the current affordability crisis. They have to be creative if they decide to move forward with a home purchase.”
Gen Z’s Approach to Home Ownership
Stauffer explained that Gen Z’s approach to homeownership is very different from that of previous generations.
“Stability means something else to them,” she said. “Unlike Baby Boomers or Gen X who viewed homeownership as a cornerstone of financial security, Gen Z values experiences and job mobility over settling down.”
Because of their unique perspective, Stauffer said that Gen Zers tend to see owning a home as something to aim for later in life.
“The median age of first-time homebuyers is now 38,” she said. “That reflects just how much the timeline has shifted. Remote and hybrid work have played a huge role in this. Many are delaying or avoiding homeownership altogether and instead are focusing on renting or exploring shared housing options.”
Stauffer added that Gen Z’s ability to rethink traditional living arrangements may reshape the housing market in the future. She also shared that Gen Zers have a growing interest in investment properties.
“Some Gen Z buyers see real estate as a way to build wealth rather than create personal stability,” Stauffer said.
Challenges Gen Z Faces in Today’s Housing Market
“The challenges Gen Z faces in today’s housing market are significant,” stated Stauffer. “Affordability is their biggest obstacle. Rising home prices, limited inventory, high mortgage rates and an overall higher cost of living make it harder than ever to buy a home.
“Over the past three years, we have witnessed affordability deteriorate faster than almost any other time in history.”
Stauffer explained that student loan debt and other financial pressures add to the problem and make it extremely difficult to save for a down payment or qualify for a mortgage.
“The gap between wages and housing costs is another major factor,” she said. “The median home price is five times the median income level.”
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