Generation Z: Your next homebuyers

For 82 percent of renters, rent is their largest expense each month.

In America, 110 million people (or more than one-third of the country) rent currently, the highest percentage in more than 50 years, according to Zumper. In the next 5 years, 79 percent of these renters plan to buy. A recent report from Rent Cafe found that Generation Z (currently aged 18 to 24) represents nearly 10 percent of today’s renting population.

While it’s not surprising that millennials are planning to buy, Generation Z actually represents the highest percentage of those looking to buy in the next 5 years, at 87 percent. Following Generation Z is millennials at 85 percent, Generation X at 78 percent, and then baby boomers at 61 percent. Only 27 percent of those 65 and older plan to purchase a home in the next 5 years.

In a 2014 study, 89 percent of Generation Z reported that owning a home is a part of the American Dream, and 97 percent said they will own a home one day. The majority of Generation Z said they want to own a home by the time they hit 28, and more than half anticipate they will have an advanced college degree, a spouse and a pet by then.

The Zumper report found that 12 percent of Generation Z is saving at least $400 per month for a down payment, with 14 percent saving between $200-399. The majority of Generation Z, 86 percent, said they would consider affordability a top factor when searching for a home. The commute (72 percent) and neighborhood safety (70 percent) were also top factors.

Currently, 31 percent of Generation Z resides with friends, 23 percent reside with a partner and 17 percent live with their parents.