Homie, a real estate technology company based in Salt Lake City, has released the results of a nationwide survey that reveals home-buying trends and perspectives of the next generation of homebuyers, Generation Z.
Key survey findings include:
• Gen Z is looking to change the way homes are bought and sold through technology. The majority of participants (67 percent) would consider using an online service or app to buy a home compared to 39 percent of millennials. While millennials are currently the largest adopters of real estate technology, digital tools will become even more prevalent as Gen Z enters the real estate market.
• Gen Z is willing to spend less money on a home compared to other generations. Forty-four percent of participants said they are willing to spend $150,000 to $250,000 on a home. According to the National Association of Realtors, the median U.S. existing home price is over $360,000, proving this generation will need to be willing to spend more in order to achieve homeownership.
• A lifestyle change was the No.1 reason for wanting to buy a home. Forty-six percent of participants said a new job, growing family or relocating was the No. 1 reason for wanting to purchase a home. A recent study by Lending Tree found that Gen Z buyers are purchasing homes in more affordable cities including Salt Lake City, Oklahoma City and Phoenix.
• The majority of today’s home buyers are not putting down 20 percent. To afford homeownership in today’s hot market, younger generations are putting less money down. Fify-seven percent of participants said they are willing to put down 3 percent to 5 percent on a home, while 53 percent of millennials are willing to put down less than 15 percent on a home and 27 percent of millennials planned to put down less than 10 percent.
• The overall company experience trumps everything for Gen Z. When searching for a real estate company to buy or sell with, 52 percent of participants said the overall experience from start to finish is the most important factor, followed by technology at 33 percent. Millennials set the trend as the generation to value experiences over things and Gen Zers are following along this path.