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%).
| 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
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?
| Gen Z (18 – 24) | Millennials (25 – 34) | Gen X (35 – 50) | |
| Yes | 18% | 24% | 22% |
| Maybe | 38% | 26% | 19% |
| No | 45% | 50% | 59% |
