Meet Generation Z, the Next Generation of Homebuyers

Millennials and Boomers dominate the news cycle, and for good reason, as they are currently the demographics with the most buying power. But builders shouldn’t overlook Generation Z. The oldest of that generation are just finishing college and are looking to start the next chapter of their life. For some, that means homeownership. They currently buy roughly two percent of homes on the market, which is the same rate as the Silent Generation. This generation may be young, but they are forward-thinking with a propensity for saving their money, challenging the stereotype that younger generations blow their money on vacations and lattes. And when it comes to homes, Generation Z wants to find the best deal on a practical starter home in affordable locations in the Midwest, South, and college towns. 

Move over, millennials. Forget Generation X. (Everyone else seems to have already done so.) And it's not always about you, baby boomers. Generation Z is the latest group to start dipping its toes into the housing market—and this money-conscious group is already snapping up affordably priced homes.

These whippersnappers, born between 1997 and 2012, are now buying up about 2% of the homes on the market, according to realtor.com®'s fourth-quarter generational propensity report. They're purchasing property at the same rate as the silent generation, those born before 1946. And while that may not sound like much yet, this financially savvy generation is on track to become a home-buying force to be reckoned with in the coming years.

The report is based on a realtor.com analysis of residential mortgages (for purchases, not refinances) from real estate data firm Optimal Blue, which specializes in lending records. This is the first time Gen Z has been included in this report.

Read More