63% of Gen Z Would Rather Relocate to a New City than Stretch Their Budget to Buy a Home

Gen Z is rewriting the path to homeownership; a new survey from NewHomeSource shows they are willing to change ZIP codes before increasing their budget or settling for the wrong home

NEWPORT BEACH, Calif., Aug. 4, 2026 /PRNewswire/ -- Gen Z is determined to avoid becoming "house poor," according to a new survey from NewHomeSource, the leading marketplace for new construction homes (powered by Zonda). Nearly two-thirds (63%) say they would move to a new city or state to afford a home, while just one in five (19%) would increase their housing budget.

Unlike millennials, who came of age in a housing market where buying sooner was often thought as the best way to keep up with rising home prices, Gen Z is taking a more financially disciplined approach. Most Gen Z say they wouldn't spend more than an additional $300 per month on housing, whereas most Millennials say they would increase their budget $500 per month to afford the right house.

"Gen Z is showing a real shift in how they think about homeownership," said Ali Wolf, chief economist at NewHomeSource and Zonda. "The goal of owning a home is still absolutely there for this generation, but they're approaching it differently. Rather than stretching financially to buy as soon as possible, they're setting clear financial boundaries and expanding their search – often across city or even state lines – until they find a home that fits their budget and lifestyle. They're also holding the line on the features they want, prioritizing space, modern amenities and neighborhoods that support the way they live. That's likely in part why they may be more willing to broaden where they search than compromise on the home itself than previous generations."

Here are the top 4 things to know about Gen Z homebuyers, according to NewHomeSource's Understanding our Next Generation of Homebuyers Report:

1. Gen Z will move across state lines before overspending
When it comes to buying a home, Gen Z is willing to change almost everything except their budget. When asked what they would be willing to do to purchase a home, their top responses all centered on location:

• Relocate to a less expensive area within their state (35%)
• Explore a different neighborhood (33%)
• Relocate to a more affordable state (28%)

Increasing their housing budget ranked sixth. Nearly half of survey respondents also say they are considering relocating in the future. Their top motivations are lifestyle and quality of life (27%), a new job (21%), being closer to family (21%) and being closer to friends (18%). Housing affordability ranked sixth among reasons for relocating, a notable contrast with millennials, who ranked affordability as their top reason for moving when asked a similar question five years ago.

2. They Have a Hard Financial Line
Although 39% of respondents plan to buy a home within the next five years, most are unwilling to significantly increase their monthly housing costs to make it happen. The majority would not increase their monthly housing budget by more than $300, with most saying they would only be comfortable spending up to an additional $150 per month.

"It's very important to save for the house that I want and like, not just rush to buy an affordable home," shared one Gen Z respondent.

3. They Won't Lower Their Standards on Home Features
While Gen Z is willing to be flexible about where they live, they're far less willing to compromise on the home itself. Respondents are more willing to relocate than buy a smaller home, accept lower-quality finishes or give up neighborhood amenities, suggesting this generation has a clear vision for the home they want—not just where they want to find it.

Their top home priorities include:

• A large backyard (32%)
• A garage (32%)
• A pool (28%)
• A large kitchen (27%)

"Previous generations often bought a home first and built their lives around it," said Karyn Bonder, NewHomeSource design trends expert. "Gen Z is doing the opposite. They're waiting until they have the lifestyle they want, then looking for a home that supports it. That's why we're seeing strong demand for features that enhance everyday life—from backyards built for entertaining to larger kitchens and flexible garages."

4. The Suburbs are Making a Comeback with Gen Z
More than half (53%) of Gen Z respondents say the suburbs are their ideal place to call home, challenging the assumption that younger generations prefer urban living. The most popular choice was a suburban community with walkable or urban-style amenities.

For Gen Z, homeownership isn't about getting into the market as quickly as possible. It's about finding the right home that fits both their lifestyle and budget. As more buyers widen their search rather than lower their expectations, NewHomeSource.com is the leading marketplace to find new construction communities and modern homes that support how the next generation wants to live.

About NewHomeSource
Buying a home is one of life's most important decisions. NewHomeSource makes the journey easier by helping buyers discover new-home communities, explore available homes, compare floor plans, see available lots and connect directly with trusted builders.

As America's leading destination for new construction homes, NewHomeSource offers the largest selection of new-home communities in the United States, along with engaging digital tools designed to help buyers shop with confidence and find the right place to call home.

Learn more at NewHomeSource.com.

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SOURCE NewHomeSource