Millennial and Gen Z Homebuyer Research Series

Ongoing research into the state of NextGen homebuyers, financial behaviors, and challenges for renters.

 

The NextGen Homebuyer Research Series is a research project developed in partnership with National MI to deliver practical insights into the behaviors and psychology of the next generation of homebuyers. The research has focused on Millennial and Gen Z consumers’ relationship with money, institutional trust, and financial literacy.

We began research for the first annual NextGen Homebuyer Report in April of 2020 and have since launched 5 surveys, totaling over 4,000 respondents between the ages of 18-44, alongside countless interviews with NextGen homebuyers and experts. Unsurprisingly, a common theme through the past three years has been that of uncertainty and consumer distrust. 

To view all past reports in this series, visit NextGenHomebuyer.com.

 
 

2024 NextGen Homebuyer Report

About the Report:

The 2024 NextGen Homebuyer Report is a research project developed in partnership with National MI to provide practical insights into the behavior and preferences of the next generation of homebuyers.

Millennials and Gen Z make up the largest segment of homebuyers. As a generation that has grown up in the digital age, they have unique preferences and expectations when it comes to home buying and financing.

The report analyzes data from a January survey in 2024 of 1,000 Gen Z and Millennial respondents to gain a deeper understanding of how NextGen homebuyers approach the process of purchasing a home, including key challenges, motivations, and behaviors.

We began research for the first annual NextGen Homebuyer Report in April of 2020 and have since launched 8 surveys, totaling over 5,000 respondents between the ages of 18-44, alongside countless interviews with NextGen homebuyers. A common theme through the past three years has been that of education and distrust.

Key Insights

  1. Over half of NextGen are not confident homeownership will be accessible to the next generation.

  2. 1 in 2 NextGen are not confident in their knowledge of homebuying.

  3. 54% of NextGen do not trust lenders to help them make smart decisions about their future.

  4. YouTube is the top social media platform used by Millennials and Gen Z to search for homebuying  info.

  5. Video is the preferred type of content to consume in learning about buying a home.

  6. One-third of NextGen report uncertainty about the future as a top barrier to buying a home.

 

2023 NextGen Women’s Homebuyer Report

The Market

Millennial women are the largest demographic purchasing homes independently in the US today. Many of them are single and at least half of them are heads of household. Additionally, single women make up the second largest cohort of homebuyers, more than double that of single men, who are purchasing their first home at the median age of 33 (NAR). 

Key Discoveries

We may intellectually know that women make up a significant proportion of the market, but the data shows businesses are missing the mark in connecting with them. Women report feeling less trusting of housing and finance professionals, more uncertain of where to start the process, and less satisfied with their overall experience after the home purchase. While women have made significant strides in reducing gender inequality, women still experience major disparities in financial and health outcomes.

Top Insights

  1. NextGen women are significantly more stressed about their finances than men (37% vs 29%).

  2. 58% of NextGen women reported feeling confident in their knowledge about personal finances, in contrast with 69% of men.

  3. NextGen women reported higher levels of distrust in the housing market and professionals than men.

  4. Only 60% of Millennial and Gen Z women grew up learning about financial education, in contrast with 75% of men. 

  5. NextGen women reported significantly less access to needed financial advice and support in comparison to men (47% vs 65%).

2022 NextGen Homebuyer Report

Key Discoveries

This year’s research focused on identifying the perceived challenges and confidence of today’s nextgen consumers, looking for differences or disparities across demographics and building from previous years’ research findings. In the midst of a housing crisis, the responses were unsurprisingly grim when it came to confidence in the market and experts, and uncertainty took center stage. 

Personal financial knowledge and financial advice and support were the biggest areas of concern for the respondents. Personal financial knowledge was their third biggest challenge to their financial situation this year, behind high cost of living and mental health or anxiety. Only half of respondents said they have the financial advice or support they need to achieve their financial goals and that was further compounded by gender, race, and income. 

While there are many barriers for Gen Z and Millennial homebuyers today, this research provides actionable insights for housing and financial professionals to meet their needs and grow their business with the next generation.

About the Study

In its third annual report, Kristin Messerli has published the 2022 NextGen Homebuyer Report, sponsored by National MI. The survey collected responses from more than 1,000 U.S. adults between the ages of 18-44, representing both Gen Z and Millennial homebuyers and includes statistically significant representation across race, ethnicity, gender, education, and income. 

To view studies from 2020-2021, visit NextGenHomebuyer.com