2020 ushers in the end of a decade and with it comes a new pool of homebuyers. Gen Zs – born between 1995 and 2012, they are the oldest of the post millennial generation and are the most diverse in their racial and ethnic make-up. Babylon Area Gen Zs homeownership needs is an important conversation that local real estate professionals need to be having right now. As real estate professionals, it is incumbent on us to prepare for these future buyers. We can do this by first understanding Babylon area Gen Zs homeownership needs as they approach that home buying age.
Recently, www.homes.com conducted a poll of 1000 Gen Zs between the ages of 18- 24 in an effort at understanding how this generation is likely to impact future home buying trends.
These were some of the findings:
Early Homeownership: Gen Z’s homeownership needs includes owning a home at an early age. Approximately 87% of them plan to own their first home by they are 35 years old.
Reasons to Own a Home: Similar to previous generations, Generation Zs, gave “a place to call my own” as well as feeling that homeownership is a good investment as their main reasons for wanting to purchase a home.
Lack of Understanding of Financial Options: Gen Zs may, indeed, plan to purchase their first home relatively early, however they are under- educated about the different financial options available to home buyers. As real estate professionals, it is part of our jobs to ensure that this new population of buyers are made aware of the various options that can help them to achieve their homeownership goals. Forward thinking real estate agents will work with financial institutions to ensure that Gen Zs are aware of the different kinds of loans as well as grant programs that are available to them in their pursuit of homeownership.
Where Do They Want to Live: The majority of Gen Zs (71%) stated that close proximity to work will be essential when they are ready to purchase a home while about 52% stated a need to be close to friends and family. This is important information for real estate agents as well as other industry professionals such as builders and lenders. The Town of Babylon Building and Planning Departments should most definitely be educating themselves on upcoming trends of this new population so that they can effectively plan to meet Gen Zs homeownership needs.
Diversity: As a more diverse population, Gen Zs have a greater appreciation for diverse neighborhoods. Only 12% said they would prefer a more homogenous area to purchase a home. The question becomes… will this generation change how homes are valued? Will homes in more diverse neighborhoods become more valuable?
Real estate professionals need to keep ahead of trends. Homebuyers of today who will be home sellers tomorrow need to become aware of what Gen Zs will value in order to maximize the return on the sale of their houses.
Safety: 46% ranked a safe neighborhood as a major concern when it comes time to purchase a home. Law makers and enforcers should be taking appropriate measures to ensure that all generations are able to live in a safe environment.
What do Gen Zs Want From Their Real Estate Agents?: To be understood. They need real estate agents to understand what they value and provide services that correlate with those values.
Above are some of the values of the Babylon Area Gen Zs and their homeownership needs. As we get ready to enter this new decade, real estate professionals should position themselves so that they can understand the needs of this new generation as they strive to achieve the American dream of homeownership.