Photo: Robert Clark
Gen Z has some lofty goals about homeownership, but unlike previous American generations, they’re putting their money where their mouth is, according to a recent Realtor.com survey.
Those Gen Z-ers (18 to 24 years old) interested in homeownership are two times more likely than previous generations to be saving for a home by age 25 — and about half of Gen Z-ers plan to be homeowners by that age.
“Gen Z-ers don’t just want to become homeowners, they want to do it at a younger age and we found that they’re saving or planning to save for it accordingly,” said Realtor.com chief economist Danielle Hale in a statement.
The fervor of Gen-Z’s views about homeownership and their ambition mirrors Millennials in most respects, but there are some areas where they diverge.
Some 79 percent of Gen Z-ers are sure they want to buy a home, or already own one, compared to 82 percent for both Millennials and Gen X.
But Gen Z-ers who answered “yes” or “maybe” to desiring homeownership are more than twice as likely to have started or plan to start saving for a home before age 25 (74 percent), compared to what Millennials (33 percent) and Gen X-ers (33 percent) actually reported accomplishing.
A larger share of Gen Z-ers may be interested in pursuing homeownership “sometime in the future” (17 percent), compared to Millennials (13 percent) and Gen X-ers (11 percent).
Gen-Zers are also the least likely generation to become a homeowner solely for investment purposes (29 percent). Rather, they cite wanting to customize their living space (61 percent) as the top reason for homeownership, and are tied with Millennials for wanting to raise a family in a home (55 percent).
Overall, only 4 percent of Gen Z-ers are sure that they don’t want to own a home, on par with Millennials (5 percent) and Gen X (6 percent).
“Their desire for homeownership may be similar to that of Millennials and Gen X-ers, but graduating into one of the best labor markets in generations might give them the boost they need. Only time will tell if Gen Z-ers are able to achieve their ambitious goals,” says Hale.
The insights are the result of a recent Realtor.com survey conducted in conjunction with Harris Interactive, which included responses from 3,372 Americans across Generation X (ages 35 to 50), Millennials (ages 25 to 34) and Generation Z, to better understand the generational differences in relation to homeownership and aspirations.