Many members of Generation Z (Gen Z) are aging into adulthood and deciding whether to rent an apartment or buy a Boston condo for sale. If you find yourself in this group, it’s important to understand you’re never too young to start thinking about owning your own Boston condo. The sooner you start planning, the sooner you can move on from renting.
As you set off on your journey and plan your next move, here are a few reasons to think about homebuying this year.
While the majority of Gen Z haven’t entered the housing market yet, a large portion plan to according to a realtor.com report. The report found that 72% of Gen Z would rather purchase a home than rent long-term. As George Ratiu, Manager of Economic Research for realtor.com, says:
“With nearly three-quarters of those surveyed preferring to buy versus renting long-term, the housing industry should be prepared for millions of Gen Z buyers to bring a new wave of demand along a similar stage-of-life timeline as the millennial generation before them.”
But why do so many members of Gen Z value homeownership? According to the latest Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), young homebuyers – more than any other age group – want to become homeowners because they want to have a place of their very own.
That may be because one of the biggest benefits of homeownership is having a place where you can truly make your own by customizing it to your style and personality. Whether that’s the décor, painting, or renovations, when you own your home, you don’t have to limit yourself to what your lease and landlord will allow.
Not to mention, owning a home provides much greater long-term stability and security than renting an apartment. When you own a home, there’s also protection from steadily rising rental costs because your monthly mortgage payment is locked in for the length of your loan (typically 15 to 30 years).
Whether you’re just getting started on your homebuying journey, you want to learn more about the process, or you’re fully committed to buying your first home this year, it’s especially important to connect with a trusted real estate advisor soon, as you won’t be the only first-time buyer in the market. According to a recent survey from realtor.com, a majority of first-time buyers surveyed are looking to purchase a home in 2022. As the survey notes:
“First-time home buyers retain their optimism despite a challenging housing market in the past year. Hoping to achieve their goal of homeownership and provide a comfortable space for their families, young buyers are setting out to learn what they can about the market and setting their list of priorities for their home purchase.”
That means you’ll likely face strong competition from other first-time buyers. One way to get a leg-up on that competition is to work with a real estate professional to make sure you have the support you need to make an informed and confident decision.
If you’re planning your next move, you’re not alone. Just know it’s never too early to consider the benefits of homeownership over renting. To learn more, let’s connect today so you have a trusted professional on your side to help you explore your options.
Generation Z the new Boston condo buyer
There’s a common misconception that younger generations aren’t interested in purchasing a Boston condo for sale. Many people point to the fact that millennials put off purchasing their first home as a reason for this belief.
Odeta Kushi, Deputy Chief Economist for First American, explains why millennials have put off certain milestones linked to homeownership. Those delays led to their homeownership rates trailing slightly behind older generations:
“Historically, millennials have delayed the critical lifestyle choices often linked to buying a first home, including getting married and having children, in order to further their education. This is clear in cross-generational comparisons of homeownership rates which show millennials lagging their generational predecessors.”
So, it’s partially true that some millennials have waited on homeownership to focus on other things in their lives – and that’s impacting certain housing market trends.
Data from the National Association of Realtors (NAR) indicates the average age of a first-time homebuyer is higher today than it’s been over the past 40 years. As the graph below shows, homebuyers today are purchasing their first home an average of 4 years later than people in the 1980s and early 1990s:But just because millennials are hitting certain milestones later in life doesn’t mean they’re not interested in becoming homeowners. The recent U.S. Census reveals a significant increase in homeownership rates for millennials and other young homebuyers.As the graph above shows, millennials are entering the market in full force, and their share of the market is growing. Based on the data, the belief that younger generations don’t want to buy homes is a misconception. In fact, the recent Capital Market Outlook report from Merrill-Lynch further drives home this point, as it specifically mentions the effect millennials are having on demand:
“Demand is very strong because the biggest demographic cohort in history is moving through the household-formation and peak home-buying stages of its life cycle.”
“. . . it’s clear that younger households (millennials!) are driving homeownership growth.”
As the largest generation, millennials’ impact on the market is growing as more and more people from that generation reach homebuying age – and Generation Z isn’t far behind, either. That means younger generations will likely continue to drive demand in the housing market for years to come.
Boston Condos for Sale and the Bottom Line
If you’re a member of a younger generation and interested in purchasing a home, you’re not alone. Many of your peers are on their path to homeownership, too. Let’s connect today and discuss what you can do to accomplish your homebuying goals.
Generation Z the new Boston condo buyer
Move over, Millennials. There’s a new generation coming to buy up the Boston condo market. There known as Generation Z and these condo buyers are poised to enter the Boston real estate market in 2018, in a strong way. Generation Z, also known as the “Net” or “Digital” generation, comprises those individuals born from 1996 to 2010. The oldest among them are now in their twenties, and many are starting to enter the Boston condo market for the first time. And they have high paying jobs and cash to do so.
But lets back up for a second. Who are Genaration Z? What do we know about them? And what are they buying? The video below, will help answer these questions.
In 2015 Fast Company reported that this group makes up 25 percent of the U.S. population, making them a larger group than either the Baby Boomers or the Millennials.
What are Generation Z looking for, researchers have found that the concerns and belief systems of this generation differ radically from both the Baby Boomers and the Millennials. They have found the following to be true about this group of young people:
1.Even though they have good paying jobs, they carry high amounts of student debt, with 46 percent feeling concerned and burdened by it.
2.Because most lived through 9/11 and all have lived with terrorism, they have more feelings of being unsettled and insecure.
3.With lower rates of teen pregnancy, alcoholism, and drug use, this generation is more risk adverse.
4.They have seen an unprecedented amount of technological change.
5..They are heavily reliant and consistent users of technology, such as cell phones and tablets.\\
6.They are more educated, more underemployed, and more culturally diverse than generations that have come before them.
This new generation is more conservative than previous generations, but members have an entrepreneurial bent. Many of them are eschewing a traditional career path, opting to freelance instead and/or independent contractor status. Perhaps seeing older generations struggle and live through the financial crisis has made them think differently. This generation has a strong entrepreneurial thought pattern towards making a living. At the 2016
REALTORS® Conference and Expo in Orlando, real estate professionals solicited a panel of five members known as the “Gen Z Consumers” to share some insight into the future of real estate. Here are some of the key points made during that presentation:
This generation values home ownership and sees it as an ultimate life goal. In fact, 97 percent of Generation Z believe they will own a home in the future.
1.Eighty-one percent plan to use a real estate professional during the home-buying process.
2.Their most-used social media sites are Snapchat, Twitter, Tumblr, and Instagram.
3.Many expect to purchase their first home between the ages of 26 and 30.
Here are some of the habits and traits they have already perfected that could have an impact on the Boston real estate experiences as consumers:
1.Many want Boston real estate agents to reach out to them on social media versus email or online advertisements.
2.Half of Generation Z use their phone to look for a better price while shopping at a retail store, perhaps reflecting their existence in a digital society wrought with technological innovation and instant connectivity.
3.Most would rather save money than spend it. They will likely look for ways to save money in the Boston condo process, perhaps opting for affordable, functional homes.
4.Most use their phone to research purchases before they buy.
5.Half of this generation identifies themselves as deal seekers.
6.Nearly three-quarters expect to experience significant failure before achieving success.
7.A vast majority of Generation Z believe their online experiences will help them reach their goals.
8.They prefer the suburban lifestyle, like Millennials, but only 17 percent want to live in the same place where they grew up.
As each new generation enters the real estate market, professionals must prepare themselves for the shift from working with Millennials to Generation Z.
Unlike past generations, many of whom remember a time before there was an Internet or cell phones, Gen Z has an affinity for today’s digital world. In fact, 90 percent plan to purchase a home online. And because they live in a time where everything is immediate, this will most certainly impact how they shop for and buy a house.
Gen Z has an affinity for today’s digital world. In fact, 90 percent plan to purchase a home online.
As a real estate agent, you must position yourself to take advantage of this growing group of potential Boston condo buyers by staying up-to-date on technology, updating your value proposition to appeal to this generation’s needs and desires, and learn all you can about this demographic
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