Welcome Home Gen Z: A New Generation Enters the Real Estate Market, An Excerpt from The Agency Red Paper 2024 Wealth Report

GEN Z HAS ENTERED THE REAL ESTATE GAME

BY SARAH JANSEN-MOUNT

The first wave of Gen Z, the digitally native generation, has stepped into the realm of homeownership. With economic factors stabilizing and Gen Z constituting a substantial 20–25% of the population, the luxury real estate market is experiencing notable changes. Here’s what you need to know about this savvy group of buyers and sellers.

They’re Digital Natives.

Gen Z is the first generation to grow up in a fully digital age, surrounded by technology from a young age. Smartphones, social media and digital platforms—it’s the world they know. That means they skillfully leverage those same tools when it comes to buying and selling real estate.

Their Entrepreneurial Spirit Shines.

Growing up in a rapidly changing economic landscape, many Gen-Z individuals are proactive in seeking opportunities for side hustles, freelancing and entrepreneurship. Their game plan may look non-traditional.

They Can Also be Pragmatic and Realistic.

In contrast to the optimism associated with Millennials, Gen Z is often considered pragmatic and realistic. They have witnessed economic challenges and are more focused on practical solutions and financial stability. They want to make a smart choice, choosing long-term viability over short-term satisfaction.

It’s all about service and experience. Gen Z will most often research your online presence, profile and past customer reviews before they will meet you. They want concierge-level service beyond the transaction— including recommendations for services and insights into local amenities like parks, restaurants, and boutiques.

They Carry a Global Awareness.

While neighborhood and location remain pivotal, Gen-Z buyers prioritize sustainability. Solarpowered homes, integrated sustainable building materials and smart home integrations, such as WiFi-enabled appliances and thermostats, are becoming essential features.

They’re Independent Learners.

With easy access to information online, they’re resourceful and rely on self-directed learning, often seeking information through online sources, tutorials and educational platforms. They do their research —at their own pace—before they connect with an agent.

They Engage with Compelling Content.

Growing up in an era of constant information, notifications and distractions, Gen Z desires concise yet engaging content. So connect with them quickly and pique their interest.

Financial Prudence Is Important to Them.

Witnessing economic uncertainties and student loan challenges faced by Millennials, Gen Z tends to be more financially cautious. They are more likely to prioritize savings, budgeting and financial planning. As they are often still building their own personal wealth, it’s common for Gen-Zers to have their parents alongside them through real estate transactions as financialsupport. This is the first time that Millennials have ever seen interest rates this high in their lifetime, which greatly affects their buying mentality.

They Value Authenticity and Individual Expression.

Gen Z values authenticity. They often seek personalized and unique experiences, both online and offline, and are drawn to brands and influencers that align with their values.

Gen-Z clients are drawn to an authentic online presence— generic content is a turnoff for this generation. They’re quick to discern insincerity and shy away from hard-selling tactics.

Flexibility and Wellness.

They tend to value flexibility in work and lifestyle, seeking a balance between personal and professional life. They seek out amenities like home gyms, saunas and outdoor spaces.

In the city, we see Gen Z buyers seeking cool and unique over traditional.

It’s all about service and experience. Gen Z will most often research your online presence, profile and past customer reviews before they will meet you. They want concierge-level service beyond the transaction— including recommendations for services and insights into local amenities like parks, restaurants, and boutiques.