Zealous Gen Z: Saving Early To Be Homeowners By Age 25
- Four of five Gen Z-ers are certain they want to be homeowners, matching the homeownership fervor of millennials and Generation X
- Gen Z-ers are two times more likely than previous generations to be saving or plan on saving for a home by age 25
SANTA CLARA, Calif., Nov. 1, 2018 /PRNewswire/ -- Generation Z is ambitious about homeownership, and it shows through their savings habits. According to realtor.com®, Gen Z-ers (ages 18 to 24) interested in homeownership are two times more likely than previous generations to be saving or plan to be saving for a home by age 25 - and two of five Gen Z-ers are aiming to become homeowners by that age.
These insights are the result of a survey realtor.com® conducted in conjunction with Harris Interactive, which included responses from 3,372 people Americans across Generation X (ages 35 - 50), millennials/Generation Y (ages 25 - 34) and Generation Z, to better understand the generational differences in relation to homeownership and aspirations.
"Gen Z-ers don't just want to become homeowners; they want to do it at a younger age and we found that they're saving or planning to save for it accordingly," said Danielle Hale, chief economist at realtor.com®. "Their desire for homeownership may be similar to that of millennials and Gen X-ers, but graduating into one of the best labor markets in generations might give them the boost they need. Only time will tell if Gen Z-ers are able to achieve their ambitious goals."
Generation Z's homeownership fervor closely resembles that of millennials and Generation X, as 79 percent are certain they want to (or already do) own a home, compared to 82 percent for both Gen Y and Gen X. A larger share of Gen Z-ers are open-minded and may be interested in pursuing homeownership sometime in the future (17 percent), compared to millennials (13 percent) and Gen X-ers (11 percent). Accordingly, Gen Z-ers who answered "yes" or "maybe" to desiring homeownership are more than twice as likely to have started or plan to start saving for a home before age 25 (74 percent), compared to what Gen Y (33 percent) and Gen X (33 percent) actually reported accomplishing.
Overall, only 4 percent of Gen Z-ers are sure that they don't want to own a home, on par with Gen Y (5 percent) and Gen X (6 percent). The expenses associated with homeownership are the biggest deterrent across all generations, especially for Gen Z-ers (48 percent vs. millennials at 31 percent and Gen X-ers at 42 percent). The second most-cited reason Generation Z didn't want to be a homeowner was that they were not yet ready to settle down in one place (25 percent).
Customization is king, especially for Generation Z
Generation Z is least likely to become or plan to become a homeowner for investment purposes (29 percent) or tax benefits (16 percent). Instead, they cite wanting to customize their space (61 percent) as the top reason for homeownership, and tied with millennials for wanting to raise their family in a home they owned (55 percent).
Why do/did you want to become a homeowner?*
Gen Z (18 - 24) | Millennials (25 - 34) | Gen X (35 - 50) | |
I want to customize my space | 61% | 54% | 47% |
It's how I want to raise my family | 55% | 55% | 46% |
Financially able to afford a home | 37% | 43% | 39% |
Real estate is a good investment | 29% | 38% | 39% |
I want to live the American Dream | 29% | 37% | 35% |
Want to put down roots in a particular community | 27% | 34% | 32% |
There are tax benefits to homeownership | 16% | 23% | 29% |
*Asked only of those who answered "yes" or "maybe" to desiring homeownership
A little help from the parents isn't off the table
Gen Z-ers are the most optimistic about getting financial assistance from their parents to reach their homeownership goals, with 56 percent saying "maybe" or "yes" to expecting or receiving financial help from family. Interestingly, Generation Z's parents are the least likely to have received family assistance from relatives. Gen X-ers were least likely to expect or have received help from their family (59 percent no), and millennials are split down the middle (50 percent no, 50 percent yes/maybe). With a head-start on savings and potentially greater access to family support, this up-and-coming generation could be better prepared to invest in real estate.
Did you/do you expect financial assistance from your family or relatives?
Gen Z (18 - 24) | Millennials (25 - 34) | Gen X (35 - 50) | |
Yes | 18% | 24% | 22% |
Maybe | 38% | 26% | 19% |
No | 45% | 50% | 59% |
About realtor.com®
Realtor.com®, The Home of Home Search℠, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
Media Contact:
Realtor.com®
Tammy Lee
[email protected]
SOURCE realtor.com
Share this article