Millennials are the largest share of home buyers, but the generation behind them, Gen Z, is starting to pick up some purchasing power.
This cohort, which consists of people born after 1995, accounts for 3% of the overall population of people who purchased a home in the past year.
MarketWatch's Jacob Passy reports on how Gen Z might impact the market in the years to come.
Gen Z buyers are better off than other members of their generation: 67% of them used a gift or loan from a family member or friend as part of their down payment.
Some 82% of Generation Z believe that homeownership is critical to achieving the American Dream, while 97% believe they will someday own a home, according to data from the National Association of Realtors. They’re entering their adult years at a time when renting is historically unaffordable and the housing market is markedly stable.
It remains to be seen how Gen Z’s parents will influence their attitudes toward homeownership. “Their parents were the generation hit hardest by housing market crash,” said Skylar Olsen, senior economist at Zillow. “They have a closer personal connection to what happens when the housing bubble busts.”
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