Gen-Z Could Ramp Up Homeownership in Next Five Years

Gen-Z—the generation that will succeed millennials—is bringing homeownership back into vogue. That is, Gen-Zers want to be homeowners, and the oldest segment of the demographic group, which some say is as old as 23, plans to buy a home in the next five years. According to research from Property Shark, 83% of Generation Z plans to purchase a home by 2023. If Generation Z is able to move into homeownership as it plans, it could surpass millennials in the home buying market.

“Gen-Z has seen a lot of insecurity of rent burden and lack of homeownership. Pairing that with the fact that Gen-Z has grown up with a safe luxury,” Eliza Theiss, author of the report at Property Shark, tells GlobeSt.com. “This generation is used to the idea of having a home and the idea that a home brings certain securities and freedoms. I think seeing that millennials have not had that security or that this generation has needed to move back in with their parents has also contributed to this trend.”

One of the principal differences between millennials and Gen-Z is the recession. Millennials were starting out in job market during the recession. Gen-Z, on the other hand, wasn’t old enough during the last recession to be impacted. Plus, the demographic group is benefitting from a strong and expanding economy and healthy job market. “Gen-Z is in a stronger economy starting out than millennials were, and that gives them a better starting place,” says Theiss. “For that reason, we may see Gen-Z overtaking the housing market from millennials.”