Homeownership is a milestone goal of many. But in recent years, the ongoing shift of economic factors like rising inflation and higher interest rates have changed the plans of some prospective homebuyers – or simply adjusted their route to get there.
Plenty of those entering the housing market right now are Gen Z and millennials, many of whom are navigating a real estate transaction for the very first time. Therefore, it’s especially helpful for real estate professionals to understand what’s inspiring homeownership – and what may be blocking it – among these specific cohorts.
The 2024 Future of Real Estate Report from RE/MAX is a deep dive into just that. The comprehensive, data-driven resource sheds light on current real estate trends across the U.S. – and considers where buyer tendencies are heading next.
“In 2024, research and analysis remain of the greatest importance to our industry. As the market and global dynamics shift, our role as real estate professionals is to guide buyers and sellers through this evolving terrain,” said Abby Lee, RE/MAX EVP of Marketing and Communications, in the report’s introduction.
“With Gen Z and millennials already constituting 41% of buyers and 25% of sellers, it is critical that we understand their preferences, financial capabilities and lifestyle choices, and that they understand the importance of real estate agent representation.”
Explore key components of the latest Future of Real Estate report:
“Wellness real estate” is a growing phenomenon
Younger homebuyers are increasingly seeking homes that don’t just fulfill their physical needs, but fulfill their emotional needs, too.
“Across America, people are experiencing isolation and loneliness at record levels, with Gen Z and millennials twice as likely to report feeling lonely in comparison to those over 65. For young people, a fear of isolation is having an impact on homebuying decisions,” the report said.
In turn, access to social circles, family, and local amenities are top priorities when seeking a new house.
One recent first-time homebuyer cited in the report shared, “As our families get older, we will be the ones to take over the hosting duties for family events. We wanted a huge backyard that will set us up for hosting, and the home we bought has that.”
But the house itself isn’t the only component of homebuying that aids in wellbeing – many of these buyers are also pursuing places that present opportunity to engage with a close-knit community, helping foster a sense of belonging.
FOR Report
Two thirds of younger consumers appreciate a real estate agent with a social media presence
Technology plays an integral role in so many aspects of modern life, including real estate – and that doesn’t appear to be stopping anytime soon. According to the RE/MAX report, 41% of younger Americans surveyed use social media to learn about real estate. And two thirds of young people say that real estate agents with a presence on social media make it easier to find prospective properties, and make information regarding the process more accessible.
In addition to gaining insights from real estate agents, some consumers are seeking knowledge from AI. The report found that one in five recent young homebuyers and sellers used AI-powered tools to help them better understand the buying and selling practices as a whole.
However, while AI may have seemingly limitless information, it doesn’t help consumers plan within the specifications of their unique transaction. The help of a real estate agent, in turn, is still essential to help people sift through the noise.
66% of Gen Z and millennial homeowners say owning a home makes their life less stressful
Having been pushed to the sidelines due to ongoing economic factors, many of today’s buyers entering the housing market are seeking a place that fits their lifestyle now – and the lifestyle they hope to have in the future.
According to the report, more than half of Gen Z and millennials want to be homebuyers prior to expanding their families, and 66% of them say owning a home makes their lives less stressful – both signs of planning ahead.
These prospective buyers are considering the future potential of the properties they’re interested in purchasing. Thirty-two percent of prospective first-time buyers are seeking homes that are move-in ready – and one in four prospective first-time buyers say the age of the building is an important factor they consider when looking to buy.
More than half of young consumers consider the views of family before purchasing a home
To help ensure they’re making the right decision, many Gen Z and millennial homebuyers are gladly seeking the opinions of family and other trusted loved ones. The RE/MAX data found that 53% of young people take into consideration the views and opinions of family members when buying or selling a home.
Many of the sources they’re turning to, however, haven’t been active participants in the real estate market in years. Whether or not that’s the case, these buyers are finding it helpful to have an experienced and trusted real estate agent bring the latest local market intel to the table.
The 2024 RE/MAX Future of Real Estate Report was created in collaboration with creative agency Camp + King and cultural insights agency Canvas8. The elaborate process of collecting data included interviews, trend analysis, real estate agent commentary, surveys and more.
To learn more about where real estate is heading in the U.S, download the full 2024 RE/MAX Future of Real Estate Report.
Get RE/MAX News delivered to your inbox! Sign up for News Alerts in the footer below.
Written by RE/MAX News
