The 5 things millennial and Gen Z homebuyers want

A post for real estate agents and financing partners. Homeownership is the most-mentioned milestone among adults 26 years and older, according to a Bankrate survey in March of 2022.

The same survey found that the percentage of respondents who "never want to own a home" was lowest among Gen Zers (9%) and millennials (12%) as compared to Gen Xers (17%) and baby boomers (18%). So if the vast majority of Americans are looking to buy a home, what are they looking for along the way? 

Top 5 things millennial and Gen Z buyers are looking for:

1. Affordability: The biggest hurdle to homeownership for millennial and Gen Z buyers is affordability. The combination of increasing home prices, higher mortgage rates, and the largest student debt load of any generation have pushed homeownership out of reach for an increasing number of first-time buyers. According to a recent NAR study, the average age of the first-time buyer is now 36, up from 33 in 2020. First-time homebuyers are looking for affordable ways to get into the market, which means both lower down payment solutions as well as lower monthly costs of homeownership. As a partner on the journey, help your customers find creative solutions to make homeownership affordable.
2. Digitally Native Experience: Millennials and Gen Z prefer an online home buying experience. They expect search functions to be intuitively designed so they can quickly find homes in their desired location; virtual tours or 3D renderings of homes that are not physically available to tour; and access to financing tools like mortgage calculators. Communications with real estate agents, financing providers, inspections, closing / escrow, etc should be through text and mobile apps, asynchronous, and instantaneous. Meet me where I spend a lot of my time: on my mobile phone.
3. A Transparent and Stress-free Process: Above all, first-time buyers are looking for clarity. They want to know what kind of house they can afford, how much money they need to put down upfront, which taxes they’ll be responsible for, and more. First-time buyers value transparency when it comes to the home buying process itself. They want to understand what inspections will be required and how much time it will take to close on a loan. This is why providing step-by-step explanations for each stage of the process can help ensure that buyers have all the information necessary to make an informed decision about their purchase. The home buying experience should be as stress-free and accessible as possible. Having a clear picture of the process reduces the stress that comes with a big life decision. 
4. Advice and Handholding: Millennial and Gen Z first-time home buyers want reassurance from those guiding them through the journey. They want qualified professionals who understand their individual needs and goals, and who can provide personalized guidance throughout this huge undertaking. By understanding these key preferences, real estate agents, financing partners and other professionals have the opportunity to provide an exceptional home buying experience. With this in mind, it’s important for first-time buyers to do their research and find industry professionals who are experienced and knowledgeable about the process. Taking the time to find a trusted advisor can be invaluable throughout this journey and will help millennial or Gen Z buyers feel confident throughout the process.
5. Risk avoidance: Gen Z in particular is more risk-averse than prior generations, sometimes nick-named "generation sensible". This is the generation that grew up post 9/11 and acutely aware of their parents' struggle through the 2008-2010 Housing Crisis. Taking on a large amount of mortgage debt, the risk of declining home values, "being upside down" on their mortgage, having to replace the roof, etc are risks that first-time buyers are less comfortable with than in the past. As a trusted partner in the journey, help your customers reduce the inevitable downside risks of homeownership.