Millennials have slowly been making their way into the real estate market – but it already looks like Gen Z is the next generational group to watch.
Realtor.com’s Generational Report shows that Gen Z holds a 2% share of the housing market!
Gen Z’s median price of a home purchased falls around $160,600 – Millennials are paying around $256,500. While the price gap on homes between generations is large, down payments are closer: Gen Z is putting down 5% on their home purchases, whereas Millennials are putting down 8.5%.
While Millennials seem to be moving to northern towns and cities, Gen Z is settling down in smaller Midwestern and Southern markets. The top Gen Z markets include:
- Salem, North Carolina
- Oklahoma City, Oklahoma
- Toledo, Ohio
- Grand Rapids, Michigan
- Wichita Kansas,
- Virginia Beach, Virginia
It’s likely that Gen Z is staying put in the towns and cities where they resided for university. Because they’re only putting 5% down (likely because they haven’t had as much experience in the work force), they’ll be carrying a higher financial burden with private mortgage insurance.
One thing is for sure – Gen Z is highly interested in becoming homeowners.
Looking for more real estate news? Stop by Alliance Title’s blog to read more.