References
NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require a password.
This year, the share of Gen Z buyers and sellers aged 18 to 22 made up just two percent for both buyers and sellers. While the share is consistent with last year’s report, the sample was too small to show unique characteristics. However, this is an indicator that
homeownership is important to this generation and Gen Z buyers are a group worth keeping one’s eye on.
Source: Home Buyers and Sellers Generational Trends (National Association of REALTORS®, 2022)
Characteristics of the Millennial Generation
Generation Gap: What It Is and Why It's Important to Business (Investopedia, Jun. 3, 2022)
Born between 1981 and 1996, millennials have always known cable TV, pagers, answering machines, laptop computers, and video games. Technological advancements in real-time media and communication have driven their expectation for immediacy. They are the generation that bridges the gap of growing up in a world before and after the Internet.
10 Ways to Understand the Difference Between Millennials (Gen-Y) vs Gen-Z (Inc., May 3, 2022)
Until the significant downturns associated with the crash of 2008 and later Covid-19, which they experienced mostly as adults, Millennials, growing up, knew a world of prosperity. Born during the Reagan and Clinton years, times were good. Zs, on the other hand, have grown up watching their parents endure the hardships of both the economic collapse of 2008 and the crippling financial impact of a global pandemic.
Gen Z are Not ‘Coddled.’ They are Highly Collaborative, Self-Reliant and Pragmatic, According to New Stanford-Affiliated Research (Stanford, Jan. 3, 2022)
In summary, a typical Gen Zer is a self-driver who deeply cares about others, strives for a diverse community, is highly collaborative and social, values flexibility, relevance, authenticity and non-hierarchical leadership, and, while dismayed about inherited issues like climate change, has a pragmatic attitude about the work that has to be done to address those issues.
Younger Buyers and Home Ownership
Millennials and Gen Zers Do Want to Buy Homes—They Just Can’t Afford It, Even as Adults (CNBC, Jun. 12. 2022)
Specifically among millennials, 65% identified homeownership as a top sign of success. That number fell to 59% for Gen Zers — still a large figure, and neck-and-neck with that generation’s top choice of having a successful career (60%).
The Old-Fashioned Home-Buying Trend Millennials Are *Finally* Embracing (Pure Wow, Jun. 2, 2022)
Long story short? It looks like Millennials are breaking the ‘generational mold’ by prioritizing quality family time and mental health over 2-hour commutes and new quartzite countertops. After two years of ‘FaceTimes with grandma,’ Millenials are realizing that life’s too short to be miles away from the people they love most.
10 Ways to Understand the Difference Between Millennials (Gen-Y) vs Gen-Z (Inc., May 3, 2022)
While it's true that the social media phenomenon initially exploded during the adolescent and young adult years of the Millennial generation, the platforms they loved are receding in popularity while the Gen-Zs write their own social media chapter. The single biggest difference between the generations: Millennials prefer text-based platforms while Zs prefer visual-based media.
Working With Younger Buyers
‘Unmortgaged Millennials’: What a New Study Reveals about Millennial Homebuyers (Bankrate, Aug. 5. 2022)
Tom Parrish, head of Retail Lending Product Management at BMO Harris Bank in Chicago, says one thing in particular caught him off guard: millennials’ willingness to move a substantial distance away to purchase a home. “That willingness to relocate may be because of remote and flexible work environments becoming more common,” he says. “This expands the ability to find the right home, which could include discovering more affordable options, more space and a home in an area that meets that individual’s desired lifestyle.”
The Power to Drive Change: How Millennials are Affecting the Housing Market (Forbes, May 25, 2022)
Our survey found 23% would purchase a home without seeing it in person first. That leap of faith is not as welcomed for the older generations, as only 16% of Gen X and 5% of baby boomers would consider buying a home without seeing it first. And when it comes to emerging sectors of the housing industry, like the auction market, it’s no surprise that millennials lead the way in that arena too. More than half, or 55%, either have or would be willing to buy an auction property.
Gen Zers Are Buying Homes. Here’s Where They’re Looking (The New York Times, May 25, 2022)
The study’s results were dominated by inland cities, as more workers abandoned coastal areas. Louisville, Ky., (at 15.9 percent) climbed into the No. 2 spot from seventh place the previous year, and Oklahoma City (15.3 percent) fell one spot into third place. At the bottom were the notoriously expensive coastal cities of San Jose, Calif. (4.5 percent), New York (4.4 percent) and San Francisco (3.6 percent).
Help First-Time Buyers with Their Top Anxieties (REALTOR® Magazine, Mar. 14, 2022)
Knowledge empowers buyers. So, in addition to his timeline chart, Wener keeps clients up to date on all aspects of the transaction, especially if they hit a snag. He also has an assistant and transaction coordinator who help to keep clients informed, so nothing is left to the last minute. “Fear is real. But fear is even scarier with the unknown, so we help them know what’s next.”
The Impact of Student Loan Debt (National Association of REALTORS®, Sep. 2021)
One quarter of student loan debt holders say their debt has impacted their decision or their ability to purchase a home (29%). P. 26
What Younger Buyers Want in a Home
What are Millennials Looking for When Purchasing a Home? (The Plan Collection, Oct. 7, 2022)
For this technology-inclined group, the capability to interact with their homes as they do with smartphones is an exciting prospect. There are many gadgets designed to set up a smart house and help overcome wearisome tasks. Automated security, heating and cooling, and lights are just a few modern technologies that simplify modern living.
Top 10 Features for First-Time Home Buyers (National Association of Home Builders, Mar. 24, 2022)
A laundry room tops the list, rated essential or desirable by 83% of first-time buyers, followed by a ceiling fan and exterior lighting, each rated essential or desirable by 81%.
What Millennials’ Wellness Focus Means for the Housing Market (Forbes, Jul 27, 2021)
“Respondents ranked happiness first. Protecting the environment and health/wellness were tied for second,” the researchers noted. In their home-buying decisions, neighborhood quality and safety ranked highest for millennials and healthy homes ranked closely below, followed by closeness to open space, walking trails and activities, all of which point to the health potential of communities.
Here’s How Millennials are Creating Trends in Home-Buying Market (AZ Big Media, Jul. 19, 2021)
“Millennials want everything from their refrigerator to the lights to be integrated and wirelessly connected,” Olson said. “We’ve also seen our builders within Estrella getting requests for energy-efficient features that help reduce both their carbon footprint and energy bills each month.”
Who Are Millennials and What Do They Want in a Home? (McKissock, Jun. 16, 2021)Millennial homebuyers want spaces that are efficient, in terms of use and energy. They are not interested in large, ornate homes in the suburbs, but would rather be in something small, flexible, personalized, and close to restaurants, shops, and recreational space.
Books, eBooks, & Other Resources
100 Questions Every First-Time Home Buyer Should Ask (eBook)
Home Buying 101 (Audiobook)
Marketing to Millennials (EBSCO eBook)
Your First Home: the Proven Path to Homeownership (eBook)
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