Young Buyers Are Optimistic but Wary of Market Trends, Says Survey

Knowing your buyer is one of the most essential parts of executing a successful property transaction. For sellers, this means working with an agent who understands the mindset, needs, and financial concerns of today’s most active buyers: Gen Z and Millennials.

Despite headlines that suggest younger generations have given up on homeownership, a new survey tells a different story.

A Reality Check: Homeownership Is Still Possible

The NextGen Homebuyer Report, published by FirstHome IQ in partnership with National MI, found that:

• 60% of Gen Z and Millennials believe homeownership is attainable.

• Only 19% think now is a good time to buy.

• 59% are waiting for the market to improve, particularly for interest rates to fall.

With mortgage rates hovering around 6.75% and home prices continuing to climb, it’s easy to see why. The National Association of Realtors reported the average price of existing homes recently hit $435,300—a staggering 32% increase in just five years.

Who Do Young Buyers Trust? Not Who You Think

One of the most interesting findings is where younger buyers turn for advice:

• YouTube and ChatGPT are now among the most trusted sources of information.

• Trust in banks has fallen sharply from 61.5% to 40% in just one year.

• Only 19.5% trust loan officers, while 40% say they would turn to a real estate agent first—even though just 33% say they fully trust them.

👉 What this means for sellers: If you’re hoping to attract Gen Z and Millennial buyers, make sure your agent has a strong online presence. Younger buyers are looking for information where they already spend their time—on social media and digital platforms.

How Younger Buyers Are Getting Creative

High mortgage rates and home prices aren’t stopping these buyers—they’re simply finding new ways to enter the market. According to the survey:

• 42% are considering a fixer-upper.

• 21% plan to co-buy with friends or family.

• 18.6% may rent out part of their home to cover costs.

• 47% are open to relocating to a lower-cost area.

This shows that while affordability remains a challenge, younger generations are resourceful and willing to think outside the box to achieve homeownership.

Financial Stress Is Real—but Improving

Fewer young buyers report financial stress compared to last year:

• 26% say they are financially stressed (down from 33% in 2024).

• About two-thirds admit to feeling “some stress,” with the cost of living and unexpected bills being the biggest concerns.

This signals cautious optimism. Buyers may be waiting for rates to fall, but they’re preparing themselves financially in the meantime.

What Sellers Need to Know

For sellers, the key takeaway is this: Younger buyers want financial clarity and digital-first engagement. They don’t just want to tour homes; they want to understand what they can afford and how they can make it work in today’s market.

If you’re targeting Gen Z and Millennial buyers, work with an agent who:

• Has a strong social media presence.

• Provides clear, easy-to-digest financial insights.

• Knows how to market on the platforms where young buyers spend their time.

Final Thought

The narrative that “young people have given up on homeownership” is a myth. Gen Z and Millennials are optimistic, determined, and creative—but they’re also smart about waiting for the right moment. For sellers, that means positioning your property (and your agent) to align with their expectations.