Selling real estate to Generation Z

“Generation Z is a different demographic,” said Dana Bull, real estate coach and Realtor®.

With the oldest members of Generation Z graduating college this year, they will be entering the housing market at a higher rate, she said. “It already feels competitive for first-time buyers searching for starter homes and condos,” said Bull. “It’s going to get even more crowded.”

While it may seem as if millennials and Generation Z can be lumped into the same demographic, Bull said there are features that differentiate them. “Millennials are where the internet took off,” said Bull. “Everyone graduating now? This is all they know. Everyone is connected all the time. The younger my buyers are, the faster they are at communicating and doing deals. They are quick.”

Bull said she thinks Generation Z’s entrance into the housing market may challenge older millennials who aren’t as fast. “Inventory goes quickly,” said Bull.

However, Generation Z isn’t all tech all the time. “Although Generation Z can be on the ball on digital, they actually like that face-to-face time. It’s nice to have clients who want face-to-face time. They’re rebelling against spending so much time against the screen. Because of the exorbitant cost of  going to college, there is rebellion. Is this the best way to spend money? There is backlash. Some of people are not going to college and entering the workforce. They are able to buy at a younger age.”

“The biggest hurdle for college graduates is the debt,” added Bull. “Even if they have a salaried position, they don’t have the money a down payment. From a financial standpoint, it’s feasible to get a low-paying loan. In a competitive field, you don’t have  a chance if you only have a 5 percent down payment.”

Bull said Realtors® interested in working with Generation Z should know their audience. “I think there is a lot of opportunity for content marketing. Young buyers have a lot of questions. Transactions have become so much more complicated. Now, you’re signing hundreds of documents. There is so much to think about. Advertise yourself as a coach and pro. They are smart, they want to feel in control,” she said.

She also noted that Generation Z tends to favor location over other amenities.

“This is kind of the first spring that they are out there and looking,” she added. “We will see how that shakes out.”