New data reveals that despite concerns about house prices, younger generations are ready for home ownership and see it as an important part of life.
DENVER , July 25, 2024 /PRNewswire/ — For Gen Z and Millennials in the U.S., the dream of homeownership remains an essential part of life, as they continue to feel it is important to own a home regardless of market conditions. A consumer survey released today by leading real estate company RE/MAX reveals Gen Z and Millennial attitudes toward homeownership.
Over the past few years, the housing market has seen fluctuations in inventory levels, home prices, and interest rates. As the survey revealed, market conditions aren’t causing potential buyers to rethink their purchase plans. In fact, 63% of Gen Z and Millennial respondents said they are interested, motivated, and ready to buy a home, despite some concerns about things like home prices and interest rates.
“Homeownership remains an important milestone, and our research shows that Gen Z and Millennials are ready to achieve it,” said Amy Lessinger, president, RE/MAX LLC. “While current market conditions have impacted their timelines, this next generation of homebuyers is adamant about achieving homeownership, and it’s our responsibility as real estate agents to provide them with the right tools and guidance to help them reach their homeownership goals.”
Key findings include:
Gen Z and Millennials are ready to become homeowners
Although these generations of buyers are ready to purchase a home, they have some concerns.
Nearly two-thirds (65%) of first-time homebuyers say they are motivated and interested in homeownership but are concerned about: Paying upfront costs like down payment and closing costs when buying a home (40%) Property taxes when owning a home (48%) They are less motivated and interested in homeownership than Millennials (61%) but are concerned about: Qualifying for a mortgage – due to credit score, debt and income issues (42%) Maintenance and upkeep costs when owning a home (54%) 56% of Gen Z and Millennials are willing to compromise on factors important to them (price, location, size, etc.) to become a homeowner One-third of respondents say eco-friendly/energy-efficient features are most important to them in a home, over tech-enabled features (27%) and outdoor/recreational amenities (25%)
Americans consider homeownership an important part of life.
Gen Z and millennials continue to view homeownership as an important life milestone.
Respondents selected the following as the primary reasons they want to buy a home: to provide a stable home for their family (66%), to have a place to call home (59%), and the opportunity for property values to increase (44%). For both generations, the most important factors they consider when buying a home are: price (59%), location (54%), size (34%), safety of the neighborhood (33%), and mortgage interest rates (24%).
Millennials feel more confident about their financial preparedness
Most respondents felt confident in their knowledge of the home buying process and their financial preparation to purchase a home.
More than half of Millennials (57%) feel confident they are financially prepared to purchase a home, while just under half of Gen Z (47%) feel the same. Millennials are more likely to have started saving for a down payment (42%) compared to 35% of Gen Z. More than half of Gen Z and Millennials (56%) are confident they understand key financial terms related to homeownership (interest rates, closing costs, escrow, etc.). 56% of Millennials and Gen Z say they have a good understanding of the process of getting a mortgage. Gen Z and Millennials plan to finance their future home purchase in different ways. Gen Z plans to use savings (42.8%) to fund it, while Millennials plan to use a mortgage (41.7%). Only 10% of Gen Z and Millennials plan to get help from family.
Buyers are looking for expert guidance when buying and selling
When buying or selling a home, Gen Z and millennials plan to use a real estate agent to help guide them through the housing market and the home buying and selling process.
Nearly two-thirds of respondents have used or are considering using a real estate agent or mortgage lender to learn about the home buying process (63%). 90% of respondents say they are somewhat or very likely to work with a real estate agent when buying or selling a home. 59% say it would be most beneficial to have an agent who can guide them through the process from start to finish when buying or selling. Other ways respondents plan to learn about the home buying process include: online resources (such as real estate websites and news articles) (55.4%), family and friends (44%), and home buyer education courses (27%).
To see further findings from the survey, visit news.remax.com.
Methodology: Data is based on a survey conducted in partnership with Pollfish on May 21, 2024 among 750 Gen Z (ages 18-27) and 750 Millennials (ages 28-44) in the U.S. who plan to buy their first home in the next 12 months.
About the RE/MAX Network
RE/MAX, LLC, a leading global real estate franchisor, is a subsidiary of RE/MAX Holdings (NYSE: RMAX), with more than 140,000 agents in approximately 9,000 offices and operations in more than 110 countries and territories. As measured by the number of homes sold, no other company in the world sells more real estate than RE/MAX. Founded in 1973 by Dave and Gail Liniger, RE/MAX’s innovative, entrepreneurial culture gives agents and franchisees the flexibility to run their businesses with a high degree of independence. RE/MAX agents have lived, worked and served in their communities for decades, donating millions of dollars each year to Children’s Miracle Network Hospitals® and other charitable organizations. To learn more about RE/MAX, search for a home or find an agent in your area, visit www.remax.com. For the latest RE/MAX news, visit news.remax.com.
1 Source: MMR Strategy Group survey on unsubsidized attitudes.
Source: RE/MAX LLC
