How the Next Generation Is Changing the Housing Market

How the Next Generation Is Changing the Housing Market

  • 01/26/21

Big houses, technology at center-stage, and a new generation of first-time buyers are changing the housing market.

Millennials have become the main buyers in the market, and the Gen Z population trail not too far behind. These generations have new demands, and a lot of them are non-negotiable.

So, how is this new generation of buyers influencing the housing market? Keep reading to find out.

The Role of Tech in Gen Z Housing Trends

The technological generation turns to their devices when it comes to buying a house. They do not only search for properties online but also for in-depth information about the housing market.

This process has changed a real estate agent’s value from someone who can offer meaningful information to a key negotiator. It also means that real estate websites need to keep up. They need to be lightning-fast, user-friendly, and fully-integrated to keep Millennials and Gen Zs’ attention.

The digital buying experience that these generations seek extends to all aspects. It includes methods of communication with real estate agents, which is mostly by text messages. It also extends to digital mortgage platforms. More and more lenders have jumped on board with it.

AI, digital platforms, and behavioral economics are being utilized in insurance, buying, and negotiation.

Generation Z Housing Preferences: Deluxe Homes and Suburbs

Both Generation Z and Millennials are after deluxe properties and smart houses. They have moved away from starter homes and ‘fixer-uppers’ in favor of bigger, more modern, and digitally kitted-out homes.

This reality has lead to old neighborhoods in popular locations being renovated to meet Millennial standards.

There is a huge move to find these homes in the suburbs. Almost half of the home-buying Millennials choose the suburbs over big cities or countryside areas.

The ability to buy deluxe houses is due to these generations joining the property ladder quite late. They are willing to spend up to a year shopping for the perfect home and are happy to spend years saving up for a new, modern home.

Sustainability, Millennials and Real Estate

The U.S. housing market has never been too concerned with environmentalism and sustainability. However, Millennial and Gen Z housing trends are changing the game.

These generations are much more environmentally conscious, and it has had a significant impact on housing trends. This shift encompasses sustainable houses that include energy-efficient features and alternative energy options.

It is also lead to these first-time homeowners seeking out eco-friendly communities and areas. They are driving the green revolution in housing, and it is impacting the housing market.

The Evolving Housing Market

The new generation of buyers has starkly different preferences and demands from their parents before them. After new, deluxe homes with smart concepts and sustainable features, they expect the entire process to be digitalized.

Wonica Realtors and Appraisers know how important it is to evolve with the trends. If you are looking to put your house on the market or are interested in buying Staten Island real estate, contact us today.

Wonica Realtors & Appraisers are Staten Island’s #1 independent full-service real estate firm, serving the needs of the community for over 30 years. Whether you are buying, selling, renting, or relocating, our staff of highly trained professionals will provide quality realty services with personal attention to your individual real estate needs.

Work With Us

We help you understand the market and where to price your home for a fast sale. Our REALTORS® are familiar with the trends so they can help you appeal to a variety of potential buyers.