Gen Z In a Rush to Homeownership

Generation Z is ambitious about homeownership, and it shows through their savings habits, according to data out today from realtor.com® G

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% are certain they want to (or already do) own a home, compared to 82% 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%), compared to millennials (13%) and Gen X-ers (11%). 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%), compared to what Gen Y (33%) and Gen X (33%) actually reported accomplishing.

Overall, only 4% of Gen Z-ers are sure that they don't want to own a home, on par with Gen Y (5%) and Gen X (6%). The expenses associated with homeownership are the biggest deterrent across all generations, especially for Gen Z-ers (48% vs. millennials at 31% and Gen X-ers at 42%). 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%).

Generation Z is least likely to become or plan to become a homeowner for investment purposes (29%) or tax benefits (16%). Instead, they cite wanting to customize their space (61%) as the top reason for homeownership, and tied with millennials for wanting to raise their family in a home they owned (55%).

*Asked only of those who answered "yes" or "maybe" to desiring homeownership

Gen Z-ers are the most optimistic about getting financial assistance from their parents to reach their homeownership goals, with 56% 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% no), and millennials are split down the middle (50% no, 50% 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?