Constant discussion about how property has become unaffordable for Millennials and Gen Z has prompted regular market research to uncover the attitudes and aspirations of younger buyers.
These reports offer fascinating insights, especially if you’re about to downsize and sell your family home because these two generations are your most likely buyers.
First-time buyers currently make up 28% of the market, which is a 2% increase on August 2024, according to the latest data from the National Association of Realtors (NAR).
They make up a larger portion of the buyer segment than investors and second-home buyers combined, according to NAR.
So, the idea that they’ve been priced out of the market appears extreme, although there’s no doubt it’s harder to buy than it was for earlier generations.
The latest NextGen Homebuyer Report published by FirstHome IQ and National MI suggests 60% of Gen Z and Millennials – those aged between 18 to 44 – believe home ownership is attainable.
However, a similar percentage (59%) don’t think it’s a good time to buy. In my opinion, that is a serious error of judgment.
American property prices are not going to fall. When mortgage costs drop, values will rise. The longer these two generations sit on the sidelines, the more costly their entry will be into the market.
If you think they’re going to buy a home in the same way their parents did, think again. Their media consumption is so different that the marketing campaign to sell your home should be tailored to their tastes.
If you want to find younger buyers, this is where you need to be seen:
Online video – 66% use YouTube to learn about buying a home. Being on YouTube should no longer be seen as an option. Bake it into your marketing campaign as you would for listing sites like Zillow or Realtor.com.
Social media – 40% of Gen Z and 30% of Millennials use social media to research homebuying.
Podcasts etc – Other popular sources of information are online courses (42%), podcasts (35%) and forums (especially Reddit) (28%).
AI tools – 35% of all respondents use AI tools like ChatGPT for homebuying questions. For Gen Z, that number is much higher at 43%
Making a call – After doing their research, 44% of Millennials and 38% of Gen Z said they’d call a realtor. The least popular choice? The lender. Only 12% of Gen Z respondents said they’d talk to a loan officer.