DS News has reported [1] that homeownership has been slowing down, particularly among millennials. While this has taken place, rental household formation has been increasing, with millennials making up a large share of this growing population. But what about the generation that follows behind Millennials? What are those from Generation-Z, or those born after 1996, planning when it comes to becoming future homeowners?
The National Association of Realtors put together a panel [2] composed of five members of young people ages 14 to 18, to discuss their desire to become homeowners, during the 2016 REALTORS Conference & Expo.
"We are here today to talk about the future of real estate. We know enough about millennials, now we need to learn about the next generation," said Sherry Chris, president and CEO of Better Homes and Gardens Real Estate. "Generation Z are the teenagers of today that will shape – and are already starting to – the way we live, the way we function and the way we do business."
Ninety-seven percent of Generation Z believe that they will own a home in the future, according to Better Homes and Gardens Real Estate, and 82 percent indicate that homeownership is the most important factor in achieving the American Dream.
"That might sound a little traditional, especially when compared to what we've seen with millennials, but this is a generation that values homeownership," said Chris.
All five of the panelists expressed a desire to own a home and are certain that homeownership will be part of their future. When asked about their ideal homes, the panelists varied in wanting to live in either rural or suburban areas and in a home with traditional or modern décor.
It was also found that 81 percent of those polled from Generation Z believe they will work with a real estate agent during the home purchase process. Even though they will most likely begin their search online, those from Generation Z believe that it is important to have a professional at their side. When asked about whether or not they would work with a real estate professional when they purchase a home, the panelists’ answer was a resounding yes.