Gen Z Is Playing the Long Game in Real Estate
Despite high housing costs and rising rates, Gen Z buyers aren’t backing down—they’re just rethinking the path to the front door. A new Realtor.com survey reveals that this generation values homeownership as part of their long-term wealth strategy, even as affordability remains their biggest hurdle.
💡 The Big Picture
Gen Z (ages 18–27) knows the housing market isn’t exactly a walk in the park—or a scroll through Zillow.
According to 🔗Realtor.com, 82% of respondents believe it’s harder for their generation to buy a home compared to previous ones. Yet optimism still reigns:
67% see homeownership as an important lifetime goal.
69% believe real estate is key to building wealth.
51% still view owning a home as part of the American Dream.
Even with that determination, only 36% feel financially ready to buy right now—reminding us that motivation isn’t the issue; affordability is.
💼 Career First, Keys Later
For Gen Z, the game plan starts with income, not interest rates. Nearly half (49.5%) rank career advancement as their top life milestone, ahead of marriage, kids, or even homeownership.
And they’re not wrong—82% say a higher-paying job would make them more eager to buy, while 80% admit affordability is the main factor holding them back.
A small gender gap shows up here too: 52% of Gen Z women prioritize their careers first, compared to 45% of men. Interestingly, 24% of men list homeownership as their first goal versus 19% of women—perhaps because more men feel financially closer to achieving it.
💰 Saving for the Dream
Despite limited affordability, Gen Z isn’t sitting idle—they’re saving smart.
Nearly three-quarters have already started saving for a down payment, averaging $54,500.
That’s well above the 2024 national average ($30,250) and reflects an intentional effort to minimize debt and manage high rates.
One-third have picked up a second job or side hustle, and about one-fourth have moved to cheaper markets to cut costs.
This shows a disciplined, practical approach to wealth-building—less “crypto gamble,” more “steady hustle.”
🏠 What They’re Looking For
When it comes to the dream home, Gen Z is realistic but intentional:
33% rank “ideal price” as the top priority.
18.5% want the right space and size.
17.9% focus on location.
Most (about 90%) prefer homes with 2–4 bedrooms, with 44.5% saying three bedrooms hits the sweet spot. And nearly 43% plan to wait to buy their forever home—not just a starter—while only 10% view homeownership mainly as an investment play.
🔮 What It Means for the Market
Gen Z’s approach could reshape the housing landscape. They’re patient, pragmatic, and planning ahead—focusing on career growth, steady savings, and long-term goals rather than chasing quick wins.
For lenders and agents, that means engaging them early, educating them on down payment options, and helping them prepare strategically rather than reactively. They may take longer to buy—but when they do, they’ll be financially strong, informed, and loyal clients.
