Gen Z-ers hope for easier market when its time to buy

Q. My daughter is very serious-minded and is younger than the Millennials. She definitely has home ownership on the schedule after finishing her last year of college and finding a good job. How do the prospects look for a young woman like her?

A. As the Millennials satisfy the need or want of home ownership, we call your daughter’s group Gen Z. They are, in general, more serious-minded about their futures. A survey by Realtor.com says that 40 percent of Gen Zers say they plan to purchase a home in five years. I hope it won’t be such a competitive market by the time they can save for a down payment. Three-quarters of the Gen Zers aren’t planning for a long-term rental situation.

According to the survey, Gen Zers are the first generation of digital natives to plan to buy, but they aren’t quite ready to take the leap. As with any generational transfer, we can expect home-buying and selling trends to shift as Gen Zers make their way into the market.

According to the report, the segment is currently prioritizing education and building a strong financial foundation. Most do not yet have the job security or funds necessary for purchasing a home, but they are working on it.

Other interesting results of the survey:

Half of future homeowners said the No. 1 barrier is job stability.
45 percent of those surveyed are already saving toward buying a home.
49 percent of future Gen Z homeowners see themselves living in the suburbs.
19 percent plan to live in a rural area.

Post-pandemic priorities

Q. As we come out of the pandemic, what are the top priorities for today’s homeowners? I am planning to get back into trying to find a house that suits me, but some of my wants have changed.

A. As we return to a “new normal,” buyers are coming out of pandemic life with different priorities when it comes to their next home.

The COVID pandemic ushered in a new way of thinking about what “home” means, and that is influencing much of what today’s home shoppers are seeking. Garages, large backyards and space for pets always rank high on buyers’ wish lists, but those features have grown in importance.

A Realtor.com survey highlights that the pandemic has elevated our relationship with family as well as the need for our home to serve multiple purposes, especially the ability to work remotely. As a result, we are placing a premium on the need to accommodate extended family, along with features like a home office and broadband internet.

Here are the top 10 home features that have become a priority because of the pandemic:

1. A quiet location, 28 percent.
2. Updated kitchen, 25 percent.
3. Garage, 24 percent.
4. Large backyard, 24 percent.
5. Outdoor living area, 20 percent.
6. Space for pets, 18 percent.
7. Updated bathrooms, 19 percent.
8. Home office, 17 percent.
9. Broadband internet capabilities, 17 percent.
10. Open floor plan, 16 percent.

In the survey, 65 percent say they will consider extended family when they get their next house, either for visiting or living part time.

The need for a short commute time and homes with smaller square footage decreased in importance from prior surveys. Only 9 percent indicated a short commute was a priority, and 4 percent were looking for smaller square footage. This was down 11 percent and 8 percent, respectively, from early March 2020 – prior to the pandemic.

Lynne French is a Realtor with Compass Real Estate and captain of the Lynne French Team. Contact her at lynne@lynnefrench.com or 925-672-8787.