Survey Reveals Gen Z Favoring Real Estate Agents Over iBuyers
Taking a page frome one of those memes popular among the younger ones today, a Homes.com survey revealed that nine out of 10 digitally-native Generation Z adults prefer (plot twist!) using a real estate agent when they buy a home over modern tech services (or even doing it on their own (FSBO)).
Generation Z, born between 1995 and 2012, is the generation that follows the millenials. With their oldest members in their early 20s at this time, they are the youngest group set to enter the current housing market with a 27% population share. While millenials comprise a third of the US homebuying market today, Gen Z is expected to become the largest U.S. demographic group with about 82 million consumers by 2026.
The survey polled more than 1,000 adult Gen Zers aged 18 to 24 years old and the unexpected outcome of old-fashioned preference over iBuyers and other similar platforms smashes assumptions about this generation that have “never known a world without digital connectivity,” as Homes.com puts it in a blog post.
Understanding what Gen Zers are looking for in an agent may explain the surprising result of the survey. And that is exactly what quality 27% of the poll respondents are looking for in an agent- the ability to understand what a Gen Zer wants in a home. Next up are an agent's knowledge of the local market (18%), experience (15.2%) and negotiating skills (9.1%). "Cost" is only of high importance to 7.3%.
The Homes.com survey also revealed 58% looking to move in to racially or ethnically diverse communities, as 47% of those surveyed are from ethnic or racial minorities themselves.
Another revelation is that Gen Zers will not be as "nomadic" as what a Silicon Valley narrative suggests they would be as 86% are looking forward to buying a home before they turn 35, with 70% preferring to live close to work.
Now the ownership rate is only at 64% which includes older, wealthier Americans and millenials, so perhaps the optimism of Gen Zers stem from coming of age in a contemporary and relatively strong economy following the Great Recession. This generation is aware, though, of what it takes to buy a home as top buyer concerns have affordability at 42.3%, saving for a down payment at 20.9%, paying off their student debt at 19.6% and maintaining a good credit standing at 10.6%.
A huge majority of survey respondents think they need to save anywhere between 11 and 20% for a down payment; in reality, the average first-time buyer's down payment is about 6 or 7%. This right here a presents an opportunity for a real estate agent to step up, enlighten and guide members of the Gen Zers of what they need to do to buy a home, proving that the good faith this new breed of homebuyers bestowed on flesh-and-blood agents over iBuyers and the like is well-placed.
If you have any topics or questions you would like answered, contact The Shanna Day Dream Home Team - we’ll find the answers for you!
Shanna Day Dream Home Team
Keller Williams Realty East Valley