Gen Z is Here: Now What?

Generation Z is here, ready to begin making a nest. Whether the generation born in the mid-1990s chooses to lease or buy – and how quickly they purchase their first home – remains to be seen. At the National Apartment Association’s annual Apartmentalize in Denver in June, some of the buzz was about Gen Z ushering in a new era for the industry. Hunington Residential SVP of Development and Operations Kate Good reminded a packed room that Gen Z, billed one of the most diverse generations to come along, is coming of age and apartment operators need to be ready. The generation’s bright-eyed elders, who have been shaped by social media and mobile technology, are leaving college dormitories or the family home to look for a place to live. The generation represents one-quarter of the U.S. population and can’t be put in a box, Good says, and companies that don’t embrace its inclusive identity “will have a lot of backlash.” But it’s not a given that Gen Z, like Millennials before them, will migrate to apartment communities with intent to stay a while. Generation values owning a home sooner than later Homes.com recently surveyed over 1,000 adult Gen Zers aged 18 to 24 years old and found that, unlike the Millennial generation, purchasing a home and putting down roots is highly desirable. The generation’s commitment to homeownership exceeded the current national homeownership rate of 64.2 percent by more than 20 points. Homes.com reports that Generation Z, unlike Millennials, are committed to buying a home at an early age. An overwhelming majority said they plan to buy their first home before age 35 (48 percent hope to buy between the ages of 25-29). Interestingly, the social butterfly generation doesn’t necessarily value being a part of a community as a reason for owning a home, according to the survey. Simply, Generation Z believes homes are a good investment and a place to call their own. Cost of home o...