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Millennials and Gen Z Are Taking Over the Housing Market—Here’s What You Need to Know

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January 16, 2025•4 min read

Millennials and Gen Z Are Taking Over the Housing Market—Here’s What You Need to Know

DATE 2025 by Cari Pelayo

The real estate market is changing, and Millennials and Gen Z buyers are at the forefront of this shift. These generations are reshaping homebuying trends with their focus on affordability, sustainability, and smart technology. If you’ve been wondering what’s driving today’s housing market, look no further—Millennials and Gen Z are making waves, and here’s why.

1. Millennials Are in Their Prime Homebuying Years

Born between nineteen-eighty-one (1981) and nineteen-ninety-six (1996), Millennials are the largest group of homebuyers today, accounting for thirty-eight percent (38%) of all buyers, according to the National Association of REALTORS® (NAR). After years of renting and waiting due to student loans, job changes, and rising home prices, Millennials are finally making their move.

What Millennials Want:

Space to Grow: Many Millennials are buying homes to accommodate growing families, focusing on properties with multiple bedrooms and flexible layouts.
Community Amenities: Proximity to parks, schools, and local shops is a priority.
Smart Technology: Features like smart thermostats, security systems, and home automation tools are must-haves.

💡 Fun Fact: According to a study by Zillow, Millennials are more likely than previous generations to buy homes in suburban areas, where they can find more space and affordability.

2. Gen Z Is Entering the Market Early

Born after nineteen-ninety-seven (1997), Gen Z buyers are surprising everyone by entering the housing market earlier than expected. Many in this generation are skipping the rental phase and jumping straight into homeownership, driven by a focus on long-term investment and stability.

What Sets Gen Z Apart:

Affordability First: Gen Z buyers are looking for smaller, budget-friendly homes in up-and-coming neighborhoods.
Sustainability Matters: Homes with eco-friendly features like energy-efficient appliances, solar panels, and sustainable materials are top priorities.
Tech-Driven Decisions: Gen Z relies heavily on apps, social media, and virtual tours to find and evaluate homes.

💡 Pro Tip: Sellers targeting Gen Z should ensure their listings are optimized for mobile platforms and include high-quality photos, videos, and virtual tour options.

3. Affordability and Sustainability Are Driving Demand

Both Millennials and Gen Z are budget-conscious and value-driven. They’re looking for homes that offer long-term financial benefits and align with their eco-friendly values.

Key Trends:

Affordable Housing Options: Starter homes, townhouses, and condos are in high demand.
Energy Efficiency: Buyers want solar panels, efficient HVAC systems, and smart home devices that reduce energy costs.
Sustainability: Features like reclaimed wood, eco-friendly paint, and energy-efficient windows are popular choices.

According to a survey by Freddie Mac, over seventy percent (70%) of Millennials and Gen Z buyers are willing to pay more for homes with sustainable features.

4. How Millennials and Gen Z Are Reshaping Real Estate

These generations are influencing how homes are built, marketed, and sold. Developers are responding with flexible floor plans, energy-efficient designs, and properties tailored to modern lifestyles.

Impact on the Market:

Walkable Neighborhoods: Both Millennials and Gen Z value convenience, with a preference for areas near public transportation, coffee shops, and coworking spaces.
Smaller, Smarter Spaces: With affordability in mind, these buyers prioritize functionality over square footage.
Tech Integration: Homes with smart features like voice-activated lights and smart locks attract more interest.

💡 Pro Tip for Sellers: Highlight eco-friendly upgrades and tech features in your listing description. Include phrases like “energy-efficient,” “smart home ready,” and “sustainable design” to attract Millennials and Gen Z buyers.

5. Why These Generations Are Transforming Homeownership

Millennials and Gen Z buyers are reshaping homeownership with their unique values and preferences. They’re focused on building equity, creating sustainable spaces, and living in communities that support their modern lifestyles.

What This Means for Sellers:
If you’re selling your home, catering to these generations can make your property stand out. Think about upgrading to include smart home technology, eco-friendly features, and modern design touches.

What This Means for Buyers:
If you’re part of these generations, now is a great time to buy. With steady price growth and creative financing options available, you can find a home that fits your needs and values.

creative financing options available, you can find a home that fits your needs and values.

Final Thoughts

Millennials and Gen Z buyers are leading the housing market, and their preferences are shaping the future of real estate. Whether you’re buying your first home or selling your property, understanding what these generations value can give you a competitive edge.

✨ Ready to navigate the market? Let’s connect today and make your real estate goals a reality!

Resources and Sources