Move over, millennials

HERE’S WHAT GEN Z BUYERS IN THEIR 20S ARE LOOKING FOR IN A HOME

They’re starting to graduate from college and enter the workforce in a robust economy. They comprise a whopping one-third of the U.S. population. And, despite their young ages, they’re eager to own a home. No, we’re not talking about millennials; instead, the focus is on Gen Z — those born between the mid-1990s and the early 2010s.

Amazingly, 83 percent of this young cohort plans on purchasing a home over the next five years, per PropertyShark data. A recent study by TransUnion, a consumer credit reporting agency, reveals that the number of Gen Zers who now have a mortgage increased by 112 percent — to more than 319,000 — between the second quarters of 2018 and 2019. That may not sound like a large number of mortgage holders, but consider that the oldest among this group are only in their early 20s.

What’s more, Gen Z appears to be a different kind of buyer than Gen Y and older homeowners. A new report by Homes.com found that 58 percent of Gen Z yearns to reside in diverse communities versus only 12 percent who prefer a homogenous neighborhood. Interestingly, their style of choice for a starter home is a single-family residence (preferred by 46 percent) over a townhome (7 percent), detached multifamily unit (5 percent) or condo (4 percent). Among their list of wanted home amenities, a backyard with a deck or patio that offers entertainment options ranked tops (54 percent), followed by an open floor plan (rooms that flow into each other; 44 percent), a garage (41 percent) and hardwood floors. Not as popular as expected among this demographic are features like eco-friendly designs/ appliances (22 percent) or smart home technology (17 percent).

Chris Oliver, the spokesperson for Hauseit, an a la carte broker services company in New York City, isn’t shocked by these findings.

“Gen Z may be the most informed generation we’ve ever seen when it comes to homebuying,” says Oliver. “Because this generation grew up with smartphones in the information economy, they know more than ever about the homebuying process before they begin. We’ve seen more and more young homebuyers who have done their online research before coming to us.”

Still, others were taken aback by some of Gen Z’s home preferences.

“I found it surprising that, while living in a diverse neighborhood is their top priority, they also prefer detached single-family homes. In many diverse areas, condos are the main starter home,” notes Brandon Marianne Lee, an agent at New York City-based Triplemint.

Also, “smart home technology taking such a low place came as a surprise to me because I expected that the integration of homes with new technology would be higher on their priority lists,” says Bryan Stoddard, owner of Homewares Insider in Teterboro, New Jersey.

Melissa Yocum, owner of Keystone Real Estate Team in Galena, Ohio, says the handful of Gen Z home shoppers she’s represented are quite particular about what they want.

“I’ve had two young couples who turned down houses that checked all their boxes except one: Neither house had a fenced-in backyard for their dogs. No amount of talking on my part could get them to change their minds,” says Yocum. “I’ve also lost potential Gen Z sales because a kitchen wasn’t updated;

the changes they wanted were cosmetic, but they still walked away.”

Mark Beal, Rutgers University School of Communication and Information assistant professor of practice in public relations and author of “Decoding Gen Z” (2018), has a hard time believing that Gen Z is in any hurry to claim a home and take on a mortgage.

“Many are starting their first full-time jobs and paying rent and

utilities for the first time while also paying off student loans. Based on my one-on-one interviews with Gen Zers nationwide for my book, they are in no rush to purchase a home,” Beal explains. “They are prioritizing unique experiences and travel over homebuying while they are in their 20s.”

Once this generation is in a better position to secure a home, they’ll likely stay true

to the preferences they were polled about, Beal believes.

“They will look for communities of diversity and inclusion. And they will look for places to live that are within walking or cycling distance to venues and events, including restaurants, bars, museums, theaters and other Instagramable experiences where they can gather and socialize with friends,” adds Beal.