A recent Realtor.com survey found that the majority of Gen Z, now aged between 18 to 25, are more cost-conscious than most and prefer to own a home rather than rent. The survey found 43% of the generation says they hope to buy a home within the next five years and another 44% will do so between five to 10 years. Gen Zers say they would most like to live in the suburbs with just one-third preferring urban living and one-fifth preferring rural areas.
“This generation is by and large not in the market yet,” says Realtor.com Senior Economist George Ratiu. However, they “already see the financial benefits of investing in real estate. Given how young they are, this level of financial maturity is applaudable.”
This generation isn’t being tempted by expensive city life. Only about a third would prefer to live in an urban area. Meanwhile, nearly half of this generation, 49%, envisions forgoing the bright lights and heading to the suburbs. About one-fifth, 19%, plans on buying in a more rural area where they can often find more space for their money.
“The experience millennials have had, migrating to the cities and paying a premium to live there only to end up a decade later unable to afford homes, may have been a lesson for Gen Z,” says Ratiu. “It may have led to look toward more affordable alternatives. It also helps that today’s suburbs look a lot more like smaller versions of urban downtowns.”
The COVID-19 pandemic hasn’t dampened their plans to become homeowners. Nearly two-thirds say it hasn’t affected their goal, and more than a quarter claim they want to buy a home even more as a result.
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