Gen Z is the generation born from 1997 to 2012. This tribe’s elders are already in their mid-twenties. Some are shopping for homes; others are becoming agents. Turns out they’re some of the savviest participants in real estate today.
They grew up in a digital world. They know social media. And they aren’t afraid to wield it to win at real estate.
Social Media Power
Need home buying ideas? Twenty-somethings with experience have you covered. Just check Tik Tok.
Home seller, do you need some quick staging tips? Gig worker, are you looking for a mortgage company that will talk to you? Small investor, would you like to know the realities of house hacking from the hackers themselves? Maybe you’d be open to buying a home with extra bedrooms you can advertise on Airbnb or another platform for income to cover the mortgage?
For these and many more ideas, today’s young people share real stories on platforms from Reddit to Instagram. Young agents come with creative insight, a keenness to share it, and hundreds of thousands of followers. The agents of earlier generations are looking to these young entrepreneurs as style and outreach role models. But of course! Appealing to “digital native” generations is now a necessity in the business. Agents connect with young people today, to ensure their success in the years ahead. Gen Z, 60 million strong, makes up a quarter of the U.S. population.
Nestlings With Ambition
One thing a lot of Gen Z members have in common? Their parents are around. Some of these young people decide to live with their parents until they are ready to strike out on their own and brave this buyer-unfriendly housing market.
These young people save tens of thousands of dollars annually by staying in the family home. Month by month, it adds up, until it’s enough to put a down payment together.
They’re free to buy homes once they have the credit profile and the savings to make it work. In most states, young people can legally buy homes if they’re 18 or older. At that age, they may apply for their own home loans, sign mortgage agreements, and close on homes.
Granted, staying in the family home to save for a down payment won’t work for everyone. Young people can’t choose their families. But they can choose their friends. In the struggle to reach a goal, peer insight and support matters.
So, as they work on building their savings, they network and form support systems online. Young real estate gurus and their followers discuss their experiences — everything from credit building to investing to interviewing prospective renters. Understanding the real estate game is the first step in mastering it.
Empathy and Community
Gen Z real estate influencers help their peers make headway in a market that most find hard to approach. They offer each other moral support, discussing the minimalist lifestyle. They urge each other to sacrifice in order to save for down payments. Many opt out of shopping at the mall, eating at restaurants, or going to concerts. Some are getting second jobs. Even third jobs.
Why the need to work so doggedly? For one thing, there’s a shortage of listings relative to the number of home seekers. So prices are high, even if the hot market is cooling in some areas.
Add in the interest on a mortgage. Yikes!
☛ How can buyers navigate mortgages today? Is it worth waiting for mortgage interest rates to come back down? Explore more on Deeds.com.
Despite everything that’s pitted against them, a surprising number of twenty-somethings actually are achieving their goals. Redfin’s figures show that almost a third of 25-year-olds have purchased homes. Granted, that number would include a lot of highly advantaged young people. But it’s worth noting that Gen Z is succeeding at rates substantially higher than millennials and Gen X did when those groups were in their twenties.
Not Just Kid Stuff
Experienced agents have known for some time that social media is a must today. They use it to share their listings with larger audiences than they ever had in the past. They take to Facebook with infographics to rivet people’s attention. They’re aware that home seekers, especially from the younger generations, look for properties on Instagram and Tik Tok. They know people look for customer service responses on Twitter. They pick up on trends and they share their own knowledge.
They meet, and make plans to greet. Using hashtags (such as #SaltLakeCity, #SLChomes, #ProvoRealEstate, or #OgdenUT) helps people connect with others in the same area.
Social media posts can distribute financing tips. They can wow potential clients with virtual tours made with drone footage. Uploaded to social platforms, these tours can reach many more clients than ever before, so buyers are better informed. Homes sell more smoothly, and faster, when buyers have access to good information.
And now, there’s Web 3. It lets agents use interactive technology that people can enter virtually. By taking immersive tours, clients can get a feel for the space, just as though they were moving through it, opening cabinets and doors. Today’s Web 3 tech lets people inspect, measure, and tour properties from their desktops or phones.
☛ What’s new in real estate technology? Check out how “virtual twin” buildings take 3D home models to the next level.
And now there’s more. Artificial intelligence (AI) will transform the process of creating home listings.
ChatGPT for real estate is already here. This and other developing AI tools represent next-level tech for agents, buyers, and others in the mix. Expect agents to produce listings and home descriptions almost effortlessly, and with tech-enabled precision. AI tools can even keep the listings updated automatically.
As for buyers, AI can help them get a feel for each home — while helping the agents zero in on the home shoppers who seek out specific features as they’re searching online. AI tools can even decorate the home, virtually, according to the agent’s or buyer’s preferences.
Artificial intelligence is expected to become adept at helping agents, sellers and buyers navigate market and mortgage interest trends, too. This is the tech that will shape real estate as Gen Z comes of age, and comes home.
OK, Gen Z.
Owning definitely isn’t for everyone in their twenties. But a surprising percentage of Gen Z people are in. For these young buyers, Reddit or Instagram or the next big platform will offer inspiration, knowledge, and support.
Still, at any age, we all need to note how we’re being influenced. Buying because others are buying can easily lead to second thoughts after closing.
☛ Sure you want to own real estate? Or is it #FOMO?
Be sure to ask yourself these 6 questions before buying a home.
Supporting References
Rebecca Chen on Forbes/Yahoo Finance: Gen Z Homebuyers Turn to Social Media to Win in Competitive Housing Market (May 13, 2023; citing figures from Zillow and Redfin).
DotLoop® by ShowingTime, a Zillow®Group Business: Generation Z in Real Estate.
Propy Blog 2023 Propy, Inc. How to Attract More Buyers and Sellers via Social Media (May 12, 2023).
And as linked.
Photo credits: cottonbro studio and Andrea Piacquadio, via Pexels.