Nearly Two-Thirds of Gen Z and Millennials Are Ready to Become Homeowners, Prices Are Holding Them Back
RE/MAX's recent consumer survey reveals that 63% of Gen Z and Millennials are eager to become homeowners despite market challenges. Key findings include:
1. 65% of Gen Z and 61% of Millennials are interested in homeownership but have concerns about affordability and maintenance costs.
2. 56% are willing to compromise on factors like price, location, or size to achieve homeownership.
3. Top reasons for pursuing homeownership include providing a stable place for family (66%) and having a place to call their own (59%).
4. 57% of Millennials feel financially ready to purchase a home, compared to 47% of Gen Z.
5. 90% of respondents are likely to work with a real estate agent when buying or selling a home.
Un recente sondaggio di RE/MAX rivela che il 63% della Gen Z e dei Millennials è desideroso di diventare proprietario di una casa nonostante le sfide del mercato. I risultati chiave includono:
1. Il 65% della Gen Z e il 61% dei Millennials sono interessati alla proprietà immobiliare ma hanno preoccupazioni riguardo all'affordabilità e ai costi di manutenzione.
2. Il 56% è disposto a scendere a compromessi su fattori come prezzo, posizione o dimensioni per raggiungere la proprietà abitativa.
3. Le principali motivazioni per perseguire la proprietà includono la creazione di un luogo stabile per la famiglia (66%) e avere un posto tutto loro (59%).
4. Il 57% dei Millennials si sente finanziariamente pronto ad acquistare una casa, rispetto al 47% della Gen Z.
5. Il 90% degli intervistati è propenso a lavorare con un agente immobiliare quando acquista o vende una casa.
Una reciente encuesta de RE/MAX revela que el 63% de la Generación Z y de los Millennials está ansioso por convertirse en propietarios de una vivienda a pesar de los desafíos del mercado. Los hallazgos clave incluyen:
1. El 65% de la Generación Z y el 61% de los Millennials están interesados en la propiedad de vivienda, pero tienen preocupaciones sobre la asequibilidad y los costos de mantenimiento.
2. El 56% está dispuesto a hacer compromisos en factores como precio, ubicación o tamaño para lograr la propiedad de una casa.
3. Las principales razones para buscar la propiedad incluyen proporcionar un lugar estable para la familia (66%) y tener un espacio propio (59%).
4. El 57% de los Millennials se siente financieramente listo para comprar una casa, en comparación con el 47% de la Generación Z.
5. El 90% de los encuestados tiene la probabilidad de trabajar con un agente inmobiliario al comprar o vender una vivienda.
RE/MAX의 최근 소비자 설문조사에 따르면 Z세대와 밀레니얼 세대의 63%가 시장의 도전에도 불구하고 주택 소유에 열망하고 있습니다. 주요 발견 사항은 다음과 같습니다:
1. Z세대의 65%와 밀레니얼 세대의 61%가 주택 소유에 관심이 있지만, 가격과 유지 관리 비용에 대한 우려가 있습니다.
2. 56%는 주택 소유를 달성하기 위해 가격, 위치 또는 크기와 같은 요인에서 타협할 의향이 있습니다.
3. 주택 소유를 추구하는 주요 이유는 가족에게 안정적인 장소를 제공하기 위한 것(66%)과 자신만의 장소를 갖기 위한 것(59%)입니다.
4. 밀레니얼 세대의 57%는 주택을 구매할 재정적 준비가 되었다고 느끼며, Z세대의 47%에 비하면 과반수입니다.
5. 90%의 응답자가 주택을 구매하거나 판매할 때 부동산 중개인과 함께 일할 가능성이 높습니다.
Une récente enquête de RE/MAX révèle que 63% de la génération Z et des Millennials sont désireux de devenir propriétaires malgré les défis du marché. Les principales conclusions comprennent :
1. 65% de la génération Z et 61% des Millennials sont intéressés par l'accession à la propriété mais s'inquiètent du coût et des frais d'entretien.
2. 56% sont prêts à faire des compromis sur des facteurs tels que le prix, l'emplacement ou la taille pour obtenir un logement.
3. Les principales raisons de poursuivre la propriété comprennent la création d'un endroit stable pour la famille (66%) et avoir un endroit qui leur appartient (59%).
4. 57% des Millennials se sentent financièrement prêts à acheter une maison, contre 47% de la génération Z.
5. 90% des répondants sont susceptibles de travailler avec un agent immobilier lors de l'achat ou de la vente d'une maison.
Eine aktuelle Verbraucherumfrage von RE/MAX zeigt, dass 63% der Generation Z und der Millennials trotz der Herausforderungen auf dem Markt bestrebt sind, Hausbesitzer zu werden. Wichtige Ergebnisse sind:
1. 65% der Generation Z und 61% der Millennials sind an Wohneigentum interessiert, haben jedoch Bedenken hinsichtlich der Erschwinglichkeit und der Instandhaltungskosten.
2. 56% sind bereit, bei Faktoren wie Preis, Lage oder Größe Kompromisse einzugehen, um Wohneigentum zu erlangen.
3. Die wichtigsten Gründe für die Verfolgung von Wohneigentum sind die Bereitstellung eines stabilen Ortes für die Familie (66%) und die Schaffung eines eigenen Platzes (59%).
4. 57% der Millennials fühlen sich finanziell bereit, eine Wohnung zu kaufen, verglichen mit 47% der Generation Z.
5. 90% der Befragten haben eine hohe Wahrscheinlichkeit, mit einem Immobilienmakler beim Kauf oder Verkauf eines Hauses zusammenzuarbeiten.
- 63% of Gen Z and Millennials are interested and ready to become homeowners, indicating strong market potential
- 56% of respondents are willing to compromise on factors like price, location, or size to achieve homeownership
- 90% of respondents are likely to work with a real estate agent, suggesting high demand for RE/MAX services
- 57% of Millennials feel financially ready to purchase a home, indicating a significant pool of potential buyers
- 56% of Gen Z and Millennials are confident in their understanding of key financial terms related to homeownership
- Concerns about affordability, including upfront costs and property taxes, may limit the pool of potential buyers
- Only 47% of Gen Z feel financially ready to purchase a home, potentially reducing the near-term market for younger buyers
- Maintenance and upkeep costs are a concern for 54% of Millennial respondents, which could impact long-term homeownership rates
Insights
The survey results from RE/MAX provide valuable insights into the homeownership aspirations of Gen Z and Millennials, two important demographics for the real estate market. While the data suggests a strong desire for homeownership among these groups, it also highlights significant challenges that could impact the housing market in the coming years.
A key takeaway is the 63% of Gen Z and Millennial respondents who are interested and ready to become homeowners. This indicates a robust potential demand for housing, which could support home prices and sales volumes. However, this enthusiasm is tempered by affordability concerns, particularly regarding upfront costs (40% for Gen Z) and property taxes (48% for Gen Z).
The willingness of 56% of respondents to compromise on factors like price, location and size suggests a degree of flexibility that could help sustain market activity even in challenging conditions. This adaptability could lead to shifts in housing preferences and potentially impact urban planning and development strategies.
Interestingly, one-third of respondents prioritize eco-friendly/energy efficient features, which could drive demand for green housing and influence construction trends. This preference might also affect the valuation of existing homes, potentially creating a price premium for energy-efficient properties.
The survey also reveals a generational gap in financial readiness, with 57% of Millennials confident in their financial preparedness compared to 47% of Gen Z. This disparity could lead to a two-speed market, with Millennials driving near-term demand while Gen Z's impact may be more gradual.
Overall, while the desire for homeownership remains strong, the market faces headwinds from affordability issues. This tension between aspiration and financial reality could shape housing market dynamics for years to come, potentially influencing everything from mortgage products to housing policy.
The survey results from RE/MAX offer intriguing insights for investors in the real estate sector and related industries. The strong interest in homeownership among Gen Z and Millennials suggests a potentially robust long-term demand for housing, which could support valuations for homebuilders, real estate investment trusts (REITs) and mortgage lenders.
However, the affordability concerns highlighted in the survey present a significant challenge. With 40% of Gen Z worried about upfront costs and 48% concerned about property taxes, there's a risk that this potential demand may not fully materialize without changes in the market or policy interventions. This could create headwinds for companies heavily exposed to the first-time buyer market.
The survey indicates that 56% of respondents are willing to compromise on factors like price, location and size. This flexibility could benefit companies offering smaller or more affordable housing options, potentially including manufactured home producers or developers focusing on suburban and exurban areas.
The preference for eco-friendly features among one-third of respondents suggests potential growth opportunities for companies specializing in green building materials, energy-efficient appliances and renewable energy systems for homes. Investors might consider exposure to these sectors as a way to capitalize on this trend.
The generational gap in financial readiness, with Millennials feeling more prepared than Gen Z, implies that near-term housing demand may be stronger from the older cohort. This could influence which price segments of the housing market perform best in the coming years.
Lastly, the high proportion (90%) of respondents likely to work with a real estate agent suggests that traditional real estate brokerage models may remain resilient despite the growth of online platforms. However, the emphasis on online resources (55.4%) for learning about the homebuying process indicates that digital-first real estate companies could still see significant growth.
New data reveals that although the younger generations have considerations about affordability, they are ready to own a home and view it as an important part of life.
Over the past several years, the housing market has seen fluctuating inventory levels, home prices, and interest rates. As the survey reveals, market conditions are not causing prospective buyers to reconsider their plans to purchase. In fact,
"Homeownership is still an important milestone, and our survey shows that Gen Z and Millennials are ready to achieve it," says Amy Lessinger, President of RE/MAX, LLC. "While current market conditions have impacted timelines, this next generation of homebuyers is resolute in their desire to achieve homeownership. It's up to us as real estate agents to provide them with the right tools and guidance to help them reach their goals of homeownership."
Key survey findings include:
Gen Z and Millennials are Ready to Become Homeowners
Buyers in these generations are ready to purchase a home but have some reservations.
- Nearly two-thirds (
65% ) of Gen Z first-time homebuyers noted they are eager to buy or interested in homeownership but are concerned about:- Affording upfront costs – such as down payment and closing costs – when purchasing a home (
40% ) - Property taxes when owning a home (
48% )
- Affording upfront costs – such as down payment and closing costs – when purchasing a home (
- Fewer Millennial respondents (
61% ) than Gen Z (65% ) are eager or interested in homeownership but are concerned about:- Qualifying for a mortgage – because of credit scores, debt and income challenges (
42% ) - Maintenance and upkeep costs when owning a home (
54% )
- Qualifying for a mortgage – because of credit scores, debt and income challenges (
- Fifty-six percent of Gen Z and Millennials are willing to compromise on important factors (e.g., price, location, size, etc.) to become homeowners
- One-third of respondents said eco-friendly/energy efficient features are most important to have in a home, over technology-enabled features (
27% ) and outdoor/recreational amenities (25% )
Americans View Homeownership as an Important Part of Life
Gen Z and Millennials continue to view homeownership as an important life milestone.
- Respondents selected the following as their top reasons for pursuing homeownership:
- To provide a stable place for their family to live (
66% ) - Have a place to call their own (
59% ) - An opportunity to have an appreciating asset (
44% )
- To provide a stable place for their family to live (
- For both generations, the most important factors considered when buying a home are:
- Price (
59% ) - Location (
54% ) - Size (
34% ) - Neighborhood safety (
33% ) - Mortgage rates (
24% )
- Price (
Millennials are More Confident in Their Financial Readiness
Many respondents are confident in their knowledge of the homebuying process and their financial readiness to buy a home.
- Over half (
57% ) of Millennials are confident in their financial readiness to purchase a home, whereas just under half (47% ) of Gen Z feel the same- A higher percentage of Millennials (
42% ) have started saving for a down payment versus35% of Gen Z
- A higher percentage of Millennials (
- More than half (
56% ) of Gen Z and Millennials are confident in their understanding of key financial terms related to homeownership (interest rates, closing costs, escrow, etc.)- Fifty-six percent of Millennials and Gen Z reported strong familiarity with the process of obtaining a mortgage
- Gen Z and Millennials are planning to help finance their future home purchases differently:
- Gen Z plan to use their savings (
42.8% ) to help cover the financing while Millennials plan to use a mortgage (41.7% ) - Just
10% of Gen Z and Millennials plan to have assistance from their families
- Gen Z plan to use their savings (
Buyers Want Professional Guidance When Buying and Selling
Gen Z and Millennials are planning to use real estate agents when buying or selling a home to help guide them through the housing market and homebuying and selling process
- Nearly two-thirds will use or consider using a real estate agent or mortgage lender to learn about the homebuying process (
63% ) - Ninety percent of respondents noted that they are somewhat or very likely to work with a real estate agent when buying or selling a home
- Fifty-nine percent said having an agent guide them through the process from start to finish when buying or selling was most valuable to them
- Additional ways respondents plan to learn about the homebuying process include:
- Online resources – e.g., real estate websites and news articles (
55.4% ) - Family and friends (
44% ) - Homebuyer education course (
27% )
- Online resources – e.g., real estate websites and news articles (
To review additional results from the survey, please visit news.remax.com.
Methodology: Data is based on a survey conducted in partnership with Pollfish and fielded May 21, 2024, among 750 Gen Z (ages 18-27) and 750 Millennials (ages 28-44) in the
About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices and a presence in more than 110 countries and territories. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children's Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.com. For the latest news about RE/MAX, please visit news.remax.com.
1 Source: MMR Strategy Group study of unaided awareness. |
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SOURCE RE/MAX, LLC
FAQ
What percentage of Gen Z and Millennials are ready to become homeowners according to the RE/MAX survey?
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How many Gen Z and Millennial respondents are likely to work with a real estate agent when buying or selling a home?
What percentage of Millennials are confident in their financial readiness to purchase a home?
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