Millennial and Gen Z Homebuyer Research Series

Ongoing research into the state of NextGen homebuyers, financial behaviors, and relationship with money.

 

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 7,000 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.

 
 

2025 NextGen Homebuyer Report

About the Report:

The 2025 NextGen Homebuyer Report, conducted in parternship with National MI, is now available as both a comprehensive written report and presentation slides. The report offers comprehensive insights into the homebuying aspirations, challenges, and behaviors of Gen Z and Millennials. Led by Kristin Messerli, Executive Director of FirstHome IQ, this fifth annual report analyzes responses from 1,000 participants aged 18-44, capturing their financial realities, homeownership perspectives, and information preferences. The research reveals significant trends in affordability strategies, trust dynamics, and digital engagement that are reshaping the homebuying journey for younger generations.

Key Insights

  1. PLUMMETING TRUST: Trust in financial institutions has dramatically declined, with banks dropping from 61.5% to 40% and loan officers falling to just 19.5% in the past year.

  2. AFFORDABILITY STRATEGIES: 42% plan to buy fixer-uppers, 21% are considering co-buying, and 19% intend to rent out portions of their homes to make homeownership more affordable.

  3. DIGITAL TRANSFORMATION: 66% use YouTube for homebuying education, 40% of Gen Z rely on social media for research, and 43% leverage AI tools like ChatGPT for information.

  4. GENERATIONAL DIFFERENCES:

    • Gen Z is 78% more likely than Millennials to consider co-buying (32% vs. 18%)

    • Only 43% of Gen Z feel confident in their personal finance knowledge compared to 53% of Millennials

  5. FINANCIAL EDUCATION LACKING: 53% reported receiving no formal financial education in school, with an additional 29% indicating it was only optional or a short lesson.

 

2024 Psychology of Money

About the Report

The 2024 NextGen Psychology of Money Report, developed in partnership with National MI, provides key insights into the financial behaviors and mindsets of Gen Z and Millennials. Kristin Messerli, executive director of FirstHome IQ, led the research and developed a money personality quiz, designed to help people understand their tendencies in financial mindset, planning, and spending. Key themes include a lack of confidence, cautious investment approaches, and gender differences in financial optimism.

We collected survey responses from 300 participants aged 18 to 55+ using a survey collection platform, ensuring a balanced representation of both Gen Z and Millennials. Participants rated their agreement with various statements that reflect their financial behaviors, attitudes, and decision-making processes. The survey data were then analyzed to categorize individuals into three main profiles: Money Mindset, Financial Planning, and Spending Behavior.

Top Insights

  1. LOW CONFIDENCE: Only 29% reported confidence in their ability to manage their finances

  2. EQUAL DEPENDENCE: Consumers are equally split between preferring a collaborative or independent approach to financial planning.

  3. LOW RISK TOLERANCE: 43% feel more comfortable with safer investments

  4. GENDER DIFFERENCES IN FINANCIAL OPTIMISM:

    1. Men are 63% more likely to be optimistic about finances compared to women.

    2. Men are 24% more likely to believe they can achieve their financial goals compared to women.

  5. NO AGE DIFFERENCES: The analysis highlighted no significant generational differences, with NextGen showing similar responses to other age groups.

To view studies from 2020-2025, visit NextGenHomebuyer.com