Millennials face serious competition as Gen Z enters housing market

A vast majority of Gen Zers have an eye on homeownership

By Francis Monfort

06 Sep 2018

Millennials will face serious competition from Generation Z in the real estate market in the next five years given the majority of the younger set having an eye on homeownership, according to generational survey released by PropertyShark.

While Gen Zers – those born between 1995 and 2010 – have a number of similarities with millennials, the two groups have major discrepancies. The two generations share preferences for large urban centers, communal amenities, social media, and smart appliances. However, Gen Z sees homeownership as a long-term investment and safety measure, while millennials are the most pessimistic about the prospect of homeownership.

PropertyShark found that more than 80% of respondents from Gen X, millennials, and Gen Z expect to buy a home in the next five years. Millennials were the most likely to expect to buy a home within five years (87%), while Gen Xers who already have families and careers are the least likely.

Meanwhile, 83% of Gen Z see themselves entering the market within five years. PropertyShark only surveyed respondents over the age of 18. As such, Gen Z respondents only include those born between 1995 and 1999.

While the high number might seem attributable to youthful optimism and lack of knowledge, PropertyShark said that only 1.2% of the 100,000 Gen Z homeowners are more than 60 days late on their mortgage payments. This compares to 1.6% of boomer and millennial and 2.3% of Gen X mortgage holders, according to MarketWatch.