It's perhaps a bit hard to imagine that Gen Z is now considered the new generation of homebuyers, let alone luxury home buyers. Many still consider millennials young and only just now entering the market for homes, and while that may be true in some cases, the eldest millennials are already in their early 40s. That means it's highly likely that a large number of the millennial generation has already purchased homes.
The eldest Gen Zers, however, are in their mid-20s. While that might seem young, many at that age have already graduated college and are a couple of years into their professional careers, meaning they are already on the hunt for homes to start the next phase of their lives.
Unlike millennials, Gen Zers entered a more prosperous job market and are thus financially better off than millennials were in their 20s. As such, they are more prepared to be first-time home buyers earlier in life because they have the money to do so. This makes them the ideal generation to start marketing luxury homes to.
Gen Z: The Next Generation of Luxury Home Buyers
Despite many Gen Zers still being quite young, a significant percentage of them are already interested in home buying. Statistics show that 71.5% of Gen Zers are determined to buy their first home within the next one to six years, and 37.2% want to buy as early as one to three years.
The question is, are they genuinely financially prepared to tackle homeownership so soon? Experts believe so.
Unlike the millennial generation, surveys show that Gen Zers are very focused on owning homes because they want to start families while they are still young. For example, 63.6% of those surveyed say they plan on having a family, and 34% say that starting a family is their primary motivation for saving up so quickly to buy a home.
Furthermore, despite home prices increasing more in recent years than income rates, Gen Zers are determined not to let that get in their way. More than half of those surveyed say they are already saving to buy their first home. And while a large percentage of them think they will only be able to afford something small, around 7% believe they can afford larger, more luxurious houses above the $500,000 price range, making them luxury home buyers.
How to Market and Sell Luxury Homes to Gen Z
Though Gen Zers are more determined to get the homes of their dreams than millennials were at their age, it's important to understand that marketing luxury homes to this younger generation will not be the same as it was with older generations. This is because aside from the general concept of wanting a nice home, there are other things that Gen Z see as a priority in their homes compared to Gen X or boomer home buyers.
1. Aesthetics
With so many internet sites and social media apps making it easier for design trends to go viral, Gen Zers are much more discerning about design aesthetics. In other words, they have strong opinions about what they want because they want their homes to be well-designed and trendy.
So when marketing a luxury home to Gen Z, the staging and overall aesthetics of the home will play a significant role in whether they will decide to buy. This means if you aren't hip to current design trends on the internet, you might want to start learning to prepare for this new generation of buyers.
2. Practicality and Location
Convenient location is another major draw for Gen Z. Because they are still young, they want homes in locations that are conducive to very active social lives. This means within walking or easy driving distance to all forms of entertainment, such as bars, restaurants, shopping, coffee shops, theaters, and more.
However, they also want practicality. As their main drive for buying homes so early is starting families, they also want to live near good schools and safe parks where they can take their kids.
Gen Zers are also looking to live in cities that present more opportunities for growth, which means they are willing to move and consider long-distance home buying if it means finding exactly what they want.
3. Health and Wellness
This new generation of homebuyers is much more conscious of their health and well-being, which is no surprise considering they were born into a generation that highly prioritized self-care. This means they don't just want fancy, well-designed houses; they also want homes that help them lead happier, healthier lives.
So this is something to consider when selling luxury homes to Gen Z. They are going to look for homes that are cleaner, not in terms of tidiness, but in terms of material use and airflow. They are going to want homes with home gyms and even yoga or meditation spaces. And they are going to want a house with plenty of outdoor space and even a garden for spending more time in nature.
4. Sustainability
Sustainability and eco-friendly are the name of the game with Gen Z. As issues of climate change continue to get worse, newer generations are making going green a top priority in all aspects of their lives — including their homes.
Studies show that Gen Z considers climate change among the top most pressing issues. They are also the generation, along with millennials, that is more likely to make purchases based on their values. This means a green home is a must, especially if they are spending top dollar for a luxury home.
The best way to market a luxury home as sustainable to this generation is to show how it can help them reduce their carbon footprint. Ways to do this can include upgrading to energy-efficient appliances, having solar panels installed, and upgrading to a more eco-friendly HVAC system.
5. Multi-Functional Flexibility
Though the COVID-19 pandemic might have spurred the remote, work-from-home craze, newer generations were already making flexible lifestyles a priority. Millennials were really the first to start this trend, but it has carried over to Gen Z.
Gen Zers want to lead happier, healthier lives, as mentioned above — and part of achieving that means having more balanced work and personal lives. As such, hybrid and remote work is another top priority for this generation, which means having a home with a nice home office space is a must.
Wrapping Up
With surveys showing that Gen Zers are already setting their sights on homebuying, it's a good idea to start preparing new real estate strategies now to market homes to these young buyers. Unlike millennials, Gen Z wants to start families early, and they want nice homes to raise their families in — and they are prepared to work hard and save up to achieve these dreams.
So selling to this new generation of luxury home buyers should not be dismissed. Within the next couple of years, it is highly likely that Gen Zers in their late 20s will be on the hunt for their ultimate dream homes.
Add us to your Daily Routine on Alexa. Go here to add to Alexa in the Canadian Skill Store.
Are you interested in more in-depth real estate information? Check out our podcast, available on most podcast platforms.
Do you have an Android Phone? Add our Free Podcast App Here.
Do you have an I-Phone? Here is our iOS version of the podcast app.
