SANTA CLARA, Calif.,
Nov. 1, 2018 /PRNewswire/
-- Generation Z is ambitious about homeownership, and it shows
through their savings habits. According to realtor.com®,
Gen Z-ers (ages 18 to 24) interested in homeownership are two times
more likely than previous generations to be saving or plan to be
saving for a home by age 25 - and two of five Gen Z-ers are aiming
to become homeowners by that age.
These insights are the result of a survey
realtor.com® conducted in conjunction with Harris
Interactive, which included responses from 3,372 people Americans
across Generation X (ages 35 - 50), millennials/Generation Y (ages
25 - 34) and Generation Z, to better understand the generational
differences in relation to homeownership and aspirations.
"Gen Z-ers don't just want to become homeowners; they want to do
it at a younger age and we found that they're saving or planning to
save for it accordingly," said Danielle
Hale, chief economist at realtor.com®. "Their
desire for homeownership may be similar to that of millennials and
Gen X-ers, but graduating into one of the best labor markets in
generations might give them the boost they need. Only time will
tell if Gen Z-ers are able to achieve their ambitious goals."
Generation Z's homeownership fervor closely resembles that of
millennials and Generation X, as 79 percent are certain they want
to (or already do) own a home, compared to 82 percent for both Gen
Y and Gen X. A larger share of Gen Z-ers are open-minded and may be
interested in pursuing homeownership sometime in the future (17
percent), compared to millennials (13 percent) and Gen X-ers (11
percent). Accordingly, Gen Z-ers who answered "yes" or "maybe" to
desiring homeownership are more than twice as likely to have
started or plan to start saving for a home before age 25 (74
percent), compared to what Gen Y (33 percent) and Gen X (33
percent) actually reported accomplishing.
Overall, only 4 percent of Gen Z-ers are sure that they don't
want to own a home, on par with Gen Y (5 percent) and Gen X (6
percent). The expenses associated with homeownership are the
biggest deterrent across all generations, especially for Gen Z-ers
(48 percent vs. millennials at 31 percent and Gen X-ers at 42
percent). The second most-cited reason Generation Z didn't want to
be a homeowner was that they were not yet ready to settle down in
one place (25 percent).
Customization is king, especially for Generation
Z
Generation Z is least likely to become or plan to become a
homeowner for investment purposes (29 percent) or tax benefits (16
percent). Instead, they cite wanting to customize their space (61
percent) as the top reason for homeownership, and tied with
millennials for wanting to raise their family in a home they owned
(55 percent).
Why do/did you want to become a homeowner?*
|
Gen Z (18 -
24)
|
Millennials (25 -
34)
|
Gen X (35 -
50)
|
I want to customize
my space
|
61%
|
54%
|
47%
|
It's how I want to
raise my family
|
55%
|
55%
|
46%
|
Financially able to
afford a home
|
37%
|
43%
|
39%
|
Real estate is a good
investment
|
29%
|
38%
|
39%
|
I want to live the
American Dream
|
29%
|
37%
|
35%
|
Want to put down
roots in a particular community
|
27%
|
34%
|
32%
|
There are tax
benefits to homeownership
|
16%
|
23%
|
29%
|
*Asked only of those who answered "yes" or "maybe" to
desiring homeownership
A little help from the parents isn't off the table
Gen
Z-ers are the most optimistic about getting financial assistance
from their parents to reach their homeownership goals, with 56
percent saying "maybe" or "yes" to expecting or receiving financial
help from family. Interestingly, Generation Z's parents are the
least likely to have received family assistance from relatives. Gen
X-ers were least likely to expect or have received help from their
family (59 percent no), and millennials are split down the middle
(50 percent no, 50 percent yes/maybe). With a head-start on savings
and potentially greater access to family support, this
up-and-coming generation could be better prepared to invest in real
estate.
Did you/do you expect financial assistance from your family
or relatives?
|
Gen Z (18 -
24)
|
Millennials (25 -
34)
|
Gen X (35 -
50)
|
Yes
|
18%
|
24%
|
22%
|
Maybe
|
38%
|
26%
|
19%
|
No
|
45%
|
50%
|
59%
|
About realtor.com®
Realtor.com®,
The Home of Home Search℠, offers an extensive inventory of for-sale
and rental listings, and access to information, tools and
professional expertise that help people move confidently through
every step of their home journey. It pioneered the world of digital
real estate 20 years ago, and today is the trusted resource for
home buyers, sellers and dreamers by making all things home simple,
efficient and enjoyable. Realtor.com® is operated by
News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move,
Inc. under a perpetual license from the National Association of
REALTORS®. For more information, visit
realtor.com®.
Media Contact:
Realtor.com®
Tammy Lee
tammy.lee@realtor.com
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SOURCE realtor.com