Generation Z (Gen Z) is a demographic cohort generally defined as people born between 1997 and 2012. If you’ve worked with a Gen Z buyer recently, you’ve probably noticed they don’t shop for homes quite like their parents did. This up-and-coming generation is eager to own homes, but they’re taking a shrewd and patient approach in 2025.
Rather than diving headfirst into bidding wars, Gen Z house hunters are doing their homework, watching their budgets, and moving at a more cautious pace. It’s a noticeable shift: they’re shopping smarter – and yes, slower – in the current market climate.
🚶♂️ Eager for Homes, Yet Willing to Walk Away
Gen Z absolutely wants to buy homes – in fact, 67% of Gen Z respondents in one recent survey said they plan to purchase a home in 2025, according to National Mortgage Professional. That level of intent even outpaces millennials and Gen X. However, just because they’re eager doesn’t mean they’ll buy at any cost.
High prices or punishing interest rates can send them back to the sidelines in a heartbeat. In 2024, 58% of Gen Z buyers who started the process ended up abandoning their home search due to market conditions. This generation is proving to be more than willing to walk away if a deal doesn’t feel right.
The message to agents? Don’t mistake their enthusiasm for recklessness – these young buyers won’t hesitate to press pause if the timing or price isn’t favorable.
💰 Budget-Conscious and Cautious
Raised during economic ups and downs, Gen Z is highly attuned to affordability. Many came of age watching housing costs soar and are determined not to get in over their heads financially. A recent BMO survey found 69% of Gen Z renters (who intend to buy) are waiting for interest rates to drop before they pull the trigger on a purchase.
Patience is a strategy: they’d rather wait for a better rate than lock into a too-expensive loan right now. Additionally, because so many Gen Zers are early in their careers, saving for a down payment is a major hurdle – 63% have under $10,000 in total savings, and a full 17% have none at all, according to Clever Real Estate. With such tight finances, it’s no surprise they’re laser-focused on sticking to a realistic budget and avoiding homebuyer’s regret.
Gen Z house hunters are also exploring creative ways to keep costs in check. Many are open to buying fixer-uppers or homes that need a little TLC if it means a cheaper purchase price – 63% of Gen Z survey respondents said they’d consider a home that needs renovation, far more than older generations would.
In fact, Gen Z buyers have been nearly twice as likely as Gen X to actually purchase a fixer-upper (36% of Gen Z homeowners bought one). They’re often handy and resourceful – 75% of Gen Z owners handle some or all renovations themselves.
However, after a few years, reality has tempered this enthusiasm: 69% of Gen Z homeowners admit to having some regrets about the projects they’ve taken on, often due to underestimating maintenance costs and repair budgets.
The silver lining is that these lessons are making Gen Z shoppers even more cautious and informed going forward. They’ve seen the pitfalls of rushing into a home they can’t comfortably afford or maintain, and they’re determined to avoid those mistakes.
📲 Digital Natives Doing Their Homework
It’s no secret that Gen Z is the first generation of true digital natives – and that tech-savvy mindset extends to how they shop for homes. This cohort lives online, and they leverage that comfort with technology to research the real estate market intensely before making decisions.
Gen Z buyers are constantly educating themselves: scrolling through home-listing apps, watching TikToks about neighborhood trends, and reading reviews on everything from local schools to the best lenders. Surveys show that 71% of Gen Z discover products via social media, and 58% even take influencer advice into account when making purchases.
While buying a house is a much bigger decision than buying new headphones, the takeaway is that these young buyers are deeply influenced by online information sources. They’re likely to find your listings (and you, as an agent) through Instagram, YouTube, or Zillow long before they ever meet you in person.
Because Gen Z clients are so plugged in, they tend to come to the home search armed with data. They often know the comparable sales, they’ve tracked price changes on their favorite listings, and they might even bring up market stats they saw on Reddit or a finance blog.
This thirst for information is a huge opportunity for agents who work with them. Today’s young buyers “need to be armed with information, while demonstrating patience and flexibility, in order to achieve their dream of homeownership," according to National Mortgage Professional.
They appreciate agents who can provide clear guidance to complement (and correct) what they’ve been gathering online. Gen Z also expects a modern homebuying experience: they’re comfortable doing virtual tours, e-signing documents, and communicating via text or email at odd hours.
As an agent, being tech-friendly – whether that’s using Zoom for consultations or sending video walk-throughs – will go a long way toward building trust with Gen Z clients who live on their smartphones.
📆 Flexibility, Patience, and Longer Timelines
One of the most notable shifts with Gen Z buyers in 2025 is their willingness to take their time. In the frenzied market of a couple years ago, buyers of all ages felt pressure to make split-second decisions and submit offers immediately.
Gen Z has essentially hit the “slow-mo” button on that process. They’re more comfortable extending their search timeline – renting for another year, or staying with family a bit longer – if it means finding the right home at the right price.
Many young adults are indeed opting to move back in with parents or share rentals while saving money. This slower approach can be frustrating to those who expected Gen Z to buy homes as soon as they turned 25, but it’s a sensible reaction to a high-cost market.
But taking things slow doesn’t mean Gen Z lacks confidence or commitment – quite the opposite. It means they’re trying to avoid the buyer’s remorse that plagued some who rushed in earlier.
Consider that a whopping 94% of Gen Z homebuyers who purchased during the pandemic now say they have buyer’s remorse about that decision, according to a First Time Homesellers Report. (You read that right: basically all of them!).
Many felt they bought too soon or compromised too much under pressure, only to later regret the high payments or surprise upkeep costs. Those stories loom large for today’s twenty-somethings.
Gen Z has taken note and decided that a home purchase is not a race – it’s okay to wait a few extra months or even years to ensure they’re truly ready. They’re prioritizing financial stability and lifestyle fit over rushing to hit a homeownership milestone by a certain age.
👩 Working with Gen Z Buyers
So, how can real estate professionals best serve these savvy, slower-moving young buyers? Here are a few tips to keep in mind.
Educate and Empower
Gen Z clients will love you for sharing knowledge. Proactively explain each step of the transaction, provide resources on mortgages and maintenance, and be clear about costs. An informed Gen Z buyer is a happy buyer – they want to learn, so position yourself as someone they trust who can answer their many questions (or point them to reliable information). This builds trust and helps them feel confident moving forward.
Be Tech-Savvy and Responsive
Expect Gen Z to favor text messages, social media DMs, and emails over lengthy phone calls. Meet them on their preferred platforms and use digital tools to streamline the process. Whether it's virtual home tours or e-signing platforms, leveraging technology shows you “get it” and respect their digital comfort zone. Also, respond promptly – this generation is used to instant information and may grow anxious if they’re left waiting too long for answers.
Practice Patience (No Pressure Tactics)
Hard-sell approaches don’t sit well with this group. Gen Z buyers appreciate agents who respect their pace. Rather than pushing them to make an offer on House #3 because it might be gone tomorrow, give them space to deliberate. Follow up, provide new data or comps, but don’t make them feel rushed. If they decide to hold off for a few months, stay in touch and be supportive – you’ll likely be first in mind when they’re ready to act.
Highlight Affordability and Options
Given how cost-conscious they are, make sure you’re knowledgeable about first-time buyer programs, down payment assistance, or local grants that could help your Gen Z clients. They’ll also appreciate creative ideas: for example, if a home is slightly above budget, could they offset costs by renting out a room or an ADU on the property? Show them you’re on their side by finding financially sustainable solutions.
Anticipate the Inspection (and Beyond)
Because many Gen Zers are leery of unforeseen costs, they’ll be very attentive during inspections and negotiation of repairs. A great agent will prep them for this stage – discuss typical maintenance costs, encourage thorough inspections, and even have a list of trusted contractors or handypeople ready. By helping your young buyers understand what owning a home really entails (property taxes, replacing the water heater, etc.), you’ll reinforce their confidence that when they do buy, they’ll be ready for it.
Working with Gen Z buyers can be incredibly rewarding. They are enthusiastic, open to learning, and quick to share their positive experiences (hello, referral posts on social media!). Once you earn their trust, they’re also loyal – even if it takes them a bit longer to reach the closing table, they’ll remember the agent who guided them patiently and honestly. By adapting to their smarter, slower approach, you’re potentially building a client-for-life who will sing your praises in their network.
In short: Gen Z homebuyers may be cautious and methodical, but they’re very much present in the 2025 market. Embrace their style – help them make informed decisions at their own pace. If you do, you’ll position yourself as the go-to agent for this rising generation of smart shoppers.