Housing News

Gen Z Has Entered the Chat: Here’s What They’re Looking for in a Home

It might feel like Generation Z is still in high school and years away from making adult decisions. But the oldest members of this generation are already 28, years into their careers, and buying their first homes.

When it comes to home shopping, Gen Z buyers have noticeably different priorities from previous generations. Most of these choices are shaped by tight budgets.

“They are very focused on staying within their budget,” said Janel Morgan, a St. Cloud, Minn.-based Realtor who regularly works with younger buyers. “Most of my buyers are pre-approved [for a mortgage] for way more of a house than they want to spend.”

Gen Z isn’t here for anything mid, though. They want smart investments, good vibes, and homes that make sense for their lifestyle and finances. It’s giving practical with a side of personality.

From location to layout, here’s the tea on what Gen Z really wants when they start home hunting.

Gen Z represents a small part of the housing market—for now

Since the youngest members of Gen Z are still in middle school, this generation understandably makes up the smallest percentage of U.S. homebuyers.

Gen Z represents just 3% of active buyers right now, according to the National Association of Realtors’ 2025 Home Buyers and Sellers Generational Trends report. Nearly three-quarters, 71%, are first-time homebuyers.

But that will soon change. By the end of this decade, this generation will be legal adults. And many will be entering the housing market.

About 69% of adults ages 22 to 28 (the oldest of Gen Z) who don’t currently own a home plan to buy one in fewer than 10 years, according to a 2025 Insurify report.

Those already in the market look a lot different from buyers in previous generations. For instance, 30% of homebuyers ages 18 to 25 are single women, according to the NAR report. That’s significantly higher than buyers ages 26 to 59.

And aside from buyers in their 60s and beyond, Gen Z buyers are the least likely to have kids under 18 living in their homes, according to NAR.

Budget is Gen Z’s biggest concern when buying a home

Many in Gen Z are at the beginning of their careers and earn less than millennials and members of Generation X. Plus, most haven’t yet accumulated the wealth of Baby Boomers.

Unsurprisingly, a third of all Gen Z buyers cited saving for a down payment as one of their biggest challenges, more than any other generation, according to NAR’s findings.

About a third received help from parents to afford their down payments, according to a recent report from Clever Real Estate.

Budget constraints also heavily influence where Gen Z buys. Half chose their neighborhood primarily for affordability, according to NAR. But location still matters: Gen Z also prioritized proximity to friends and family, 41%, and their jobs, 43%.

Many also want to live somewhere that supports a more social lifestyle.

For instance, more than a quarter, 26%, of Gen Z homeowners bought a home because it was close to shopping, 19% wanted to be close to entertainment and leisure activities, and 17% chose a neighborhood because it was close to desirable parks and recreational facilities.

Gen Z has some non-negotiables in a home

Despite their tighter budgets, Gen Z is willing to get picky when it comes to certain home features.

For instance, 44% told Clever they wouldn’t buy a home without a laundry room. Another 39% said a backyard space was non-negotiable.

That might be because of the high rate of dog parenting among this age group. About 86% of Gen Z pet parents have dogs, according to a Forbes study. These homebuyers are more likely than other groups to “spoil” their dogs with birthday cakes and other pet services.

Roughly a third of Gen Z adults shopping for a home also reported they wouldn’t compromise on space to grow a family (35%), lots of natural light (31%), and a garage (30%).

Gen Z typically buys older, smaller homes

Generation Z often purchases older, smaller homes. About 92% of Gen Z buyers purchased a previously owned home, according to NAR. Among their top reasons: better pricing (49%), better value overall (39%), and the charm and character of older homes (14%).

“They do want the home they purchase to have been well cared for and maintained by the previous owner,” Janel noted about her market. “Many Gen Z buyers are purchasing homes from sellers who have lived in their homes for 40-plus years and are now moving to assisted living.”

Since many Gen Z buyers don’t yet have kids—and are working with leaner budgets— they often purchase smaller homes.

Buyers ages 26 to 34 (a range that includes the oldest Gen Z-ers) reported purchasing homes with a median of 1,600 square feet, according to NAR. That’s smaller than the 1,700 to 2,000 square feet typical among older buyers.

These aren’t forever homes for most Gen Z buyers

Gen Z knows their starter home isn’t their endgame. With less financial resources and fewer family obligations (for now), many are treating their first homes as a steppingstone.

About 60% of Gen Z buyers said they plan to stay in their homes for 10 years or less, compared to the 15-year median across all age groups, according to NAR.

As incomes rise, families grow, and remote work continues to shift where people can live, Gen Z's next moves might surprise us. Will lower budgets still be the deal-breakers? Will they trade cozy charm for square footage and suburbs? Only time will tell.

But Gen Z isn’t afraid to shake up the market. Period.