Buying a home has changed dramatically in recent years, to say the least. However, the younger generation continues to jump in despite of the challenges in the market. Although Generation Y, also known as Millennials, and Generation Z have some things in common, there are some differences in their desire to own a home. Below is a brief overview of the similarities of these age groups and their differences when it comes to settling down.

First, what are the aspects of buying a house shared by the two groups? Most of them want a home of their own sooner rather than later. A 2021 study found that 21% of Gen Z adults plan to buy a home in the next 12 months. Much of the generation are too young to buy a home, but the vast majority, 87%, intend to buy before the age of 35. Millennials make up the majority of homebuyers today, buying 14% of homes sold from mid-2019 to mid-2020.

Another similarity is the desired location to buy a home. Both groups want to home shop in suburban areas with easy access to the best public schools, manicured parks, shopping and entertainment venues. The charm of Suburbia also includes affordability and private outdoor spaces.

Both generations love smart home technology. Gen Z is a digital native who always has internet and smartphone in his or her life. Millennials have also grown up with technology designed to make their lives easier and more connected. Hence, both generations place great value on simple and convenient smart home devices at the top of their wish list.

How are the two generations different? Gen Z values ​​space and common amenities more than their older counterparts. Many of them are more open to alternative forms of living and small apartments. They also find a dedicated “side hustle” workspace a big plus. Realtors and home builders who understand the realities of today’s gig economy can expect Gen Z buyers to want a workshop, craft room, design studio, or something resembling a recreation room in their dream home.

The millennial generation attaches great importance to the function of the space. They want an open concept with features that allow a seamless transition from indoor to outdoor living and entertainment. In fact, these shoppers prefer updated entertainment spaces over bedrooms and bathrooms because they love being together. Millennials also value ​​environmental protection. Sustainable building materials, energy-efficient appliances and household filtration systems are very popular with these young buyers.

As more and more of these younger shoppers embark on their home hunting journey, we are likely to see an increasing reliance on social media marketing and use of real estate apps. Such practical resources allow for advanced search options, allowing potential buyers to find exactly what they are looking for in a home.

For a comparison of Gen Z and Millennial home buying aspirations, see the companion resource by Renovo Financial.