Several months ago, I thanked Millennials for their faith in real estate, seeing that Gen X isn’t a huge fan at the moment. But looking back, it appears that Generation Z is even more promising.
While there have been recent fears that homeownership is no longer a part of the American Dream, or even an aspiration for the young, a new survey reveals that it is indeed alive and well.
Just ask 13 to 17 year-olds what they think…that’s what Better Homes and Gardens Real Estate did.
Between July 18th and 29th, the company polled 1,000 teenagers to determine what they thought about buying a home in the future. And guess what, 97% of them are totally into the idea.
That’s pretty good, though I am slightly curious about the 30 or so NO responses as well.
Additionally, more than four out of five (82%) indicated that owning a home was the most important factor in achieving the American Dream.
And 89% of respondents said homeownership was part of their interpretation of said dream, followed by going to college, getting married, and having kids.
So yes, even kids that have never heard of Nintendos think a home you actually own yourself is a very necessary piece of the dream.
Willing to Make Sacrifices to Do It
Perhaps even more amazingly, these teens are actually willing to give up the stuff they love to make that dream purchase.
More than half (53%) said they’d be willing to dump social media for an entire year (and do twice the amount of homework) if it meant securing their ideal home.
Another 42% said they’d go to school seven years a week, and 39% even offered to go to prom with their mom or dad.
If you recall, Millennials like the idea of owning a home, but not if it means they have to give up their morning latte or their precious Netflix.
So bravo! teens for being both ambitious and realistic about the whole deal.
As expected, the overwhelming majority (95%) of prospective teen buyers plan to take key steps in the home buying process online, such as browsing listings and taking virtual tours.
But only 19% believe they will purchase a home online, with 81% opting for the more traditional methods such as working with a real estate agent.
That’s probably a good idea. There’s a lot the Internet can do, but sometimes it’s better to take a look in person as well.
Most Expect to Pay About $275K
Gen Z teens also seem to have a grasp on home prices, even if they don’t have their driver’s license yet.
Of those who plan to buy, they expect to pay $274,323 on average to purchase their first home. That compares to the median $273,500 for a home today, per the latest U.S. Census data.
Maybe they know home prices aren’t expected to do much in the next decade either…in the meantime, they can start saving for a down payment because most aim to buy by age 28, which is three years below the median age of first-time home buyers.
As for where they plan to buy, 47% of respondents believe their future home will be located in the burbs, which kind of debunks the recent big city trend.
Meanwhile, just 23% expect to buy near a city, 20% see country/rural areas in their future, and 10% want a destination location.
Lastly, the Gen Z respondents indicated that they plan to own just two homes in their lifetime, but we all know plans can change in a hurry.