BLOGBlog posted On May 22, 2025
Stop the presses! Gen Z has finally entered the realm of real estate and homeownership. With this younger generation — born between 1997 and 2012 — comes digital enhancements to the ways of buying and selling homes. Time to take a deep dive into these Gen Z home buying trends!
One of the largest generations (making up 20% of the U.S. population), Gen Z comprises 3% of the real estate market already. Facing an economy with higher mortgage rates and limited housing inventory, Gen Zers possess a higher mountain to climb than previous generations in certain ways. However, their tech savviness and research-based mindset are huge positives for prospective home buyers. They want to be introduced to real estate agents and loan officers, eager to boost their financial expertise and get ahead in the mortgage market.
Due to home buying hurdles like high interest rates and affordability issues with down payment percentages, first-time Gen Z buyers are turning to FHA Loans over Conventional Loans. They’re also searching for grants and down payment assistance (DPA) programs. These younger home buyers are deep diving online, researching the most tailored loan programs that can provide them a leg up in this economy. Luckily, our loan officers can advise on your loan options, specific to locational and financial needs.
Location, location, location! Where you live matters now more than ever in this ever-changing climate. Gen Zers are seeking out cities and suburbs based in and around Pittsburgh, St. Louis, Cleveland, and Detroit, where NewsNation cites these areas as pricing properties under $300,000, with Detroit falling under $200,000.
Considered a type of house hacking, Gen Zers have embraced this specific trend of co-buying a home. Creative financing like co-ownership is another staple with this generation, which helps them address and conquer the affordability barriers facing young home buyers. Pairing up with 1 to 2 friends or close family members to buy a home has become more popular, offering boosted affordability, quicker equity building, and shared expenses. However, some of the drawbacks include financial risks and lack of autonomy.
Gen Z and TikTok seem almost interchangeable these days. The digital age has definitively impacted the mortgage world, especially in how real estate agents and loan officers are advertising their services and listings. During the pandemic, mortgage professionals discovered that TikTok was an ideal way to safely show prospective buyers homes while the world was on lockdown. Agents started leveraging visual tools, like photos, floor plans, and drone videos, to make their listings pop. Ever since, TikTok has become ingrained within the real estate industry. National Mortgage Professional cited that nearly 40% of Gen Z home buyers turn to TikTok for advice, using it to help them find agents, listings, and lenders.
Moving Forward: The Tech Era of Homeownership & Real Estate Awaits
Gen Z home buyers are taking the world by storm with their tech savviness and regard for experience and financial guidance. With the help and advice of our loan officers, we’re happy to assist the next generation of home buyers in becoming homeowners. Reach out today to learn more about our first-time home buyer programs!
Source: National Association of REALTORS®, Yahoo! News, NewsNation, National Mortgage Professional
