With so much focus and media coverage on the millennials, it’s easy to forget that Generation Z is right on their heels. However, those kids with smart phones permanently attached to their hands, born between the mid-1990s and the early 2000s, are poised to make their mark on the world – and the real estate industry is watching closely.
These teenagers – also called the iGeneration – who have just begun to turn 18 are coming of age with a better job market and pay scale, lower interest rates, and a different sensibility than the generation before them.
Most significantly, Gen Z was nursed and nurtured on the internet and technology from the very beginning. While they may be keeping up with the Kardashians they’re also instantly connected to the current state of affairs and absorbing skills that will serve them well in the future job market. When it’s time for them to make financial and home-buying decisions, their means of engagement are in their hand – literally.
Although we’ve seen the millennials struggle with the depressed economy and crushing student loan debt – sometimes stereotyped as permanent residents of their parents’ basement – the Z-ers have a different outlook. The events of 9/11, wars on terror, and The Great Recession had a profound impact on these kids and they are subsequently seeking stability and tradition.
In fact, according to Better Homes and Garden Real Estate, 97 percent of Generation Z says they plan to own a home in the future and many of them value homeownership as a vital piece of the American Dream. Considering this demographic will make up almost a fourth of the U.S. population by the year 2020, that’s hardly trivial.
Another factor is this generation’s attitude toward multiculturalism. Growing up under an African American president with other changing perspectives may make these young adults more comfortable and attracted to diverse and urban neighborhoods. The millennials have already laid the path to the city lifestyle, but the Generation Z-ers want to own it and lay down roots.
While it’s impossible to positively gauge their future, what with the uncertainties of the economy, interest rates, and the political currents, the experts all agree: Generation Z is prepared to blaze new trails in the real estate landscape.
Source: DLP Marketing