New Kids on the Block: Gen Z

Look out Millennials, there are some new kids on the block: Gen Z. 

Millennials, also known as Generation Y, were born between roughly 1984 and 1996. Gen Z starts in the year 1997. And that was 25 years ago already.

Though Millennials have been pushing the average first time homebuyer age well into their 30s, Gen Zers are showing signs of readiness earlier. According to the National Association of Realtors (NAR) nearly a third of Gen Z buyers transitioned right from their parents’ home to their own.

“Traditionally people rent an apartment first after flying the nest,” says Catherine Nimmo, Sales Associate at ERA Justin Realty, “Not so for Gen Z. They’re saving up by living rent free at home, then putting it toward their down payment.”

The reason: Gen Z buyers say they want stability and their own family, and that starts with buying a house. According to the NAR, 34% said starting or growing their family was their main motivation for buying a home. 

“That in turn gives them stability,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty, “Buying a home gives them control over their biggest monthly expense: housing. A mortgage is a fixed cost. Rents rise.”

When you have a fixed mortgage rate on your home, you can lock in your set monthly payment for the duration of your loan. That’s usually 15 or 30 years. “Rent prices are at the mercy of your landlord,” adds Metzger.

So where is Gen Z  buying? “The suburbs,” says Nimmo, “Gen Z buyers want to be close to work and nightlife in the city but they also want access to nature. That’s exactly what living in a suburban area provides.”

Locating a home that provides the best of both worlds can be tricky. A knowledgeable real estate professional like Catherine Nimmo or any of the agents at ERA Justin can help. Give us a call at (201) 939-7500 if you’re Gen Z – or a member of any generation eager to buy!

(PS – If you’re wondering what comes after Gen Z, it’s Gen Alpha. Those are kids born between 2010 and now. So they still have some time.)