Starter homes? Gen Z is thinking longer-term. Today’s young consumers come with their own values, habits and tech mindsets. Learn how to build trust with this growing cohort of home buyers.
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It’s official: Gen Z has entered the real estate market. Those born between 1997 and 2012 now make up 20% of the U.S. population. As one of the largest generational groups, they present a growing opportunity for real estate professionals. Gen Z already accounts for 3% of the market, and they represent the largest share of single buyers in the market, according to the 2025 “Profile of Home Buyers and Sellers Generational Trends Snapshot.”

Despite their youth and the challenges of high mortgage rates and limited inventory, many Gen Zers are eager to purchase single-family homes, townhouses or condominiums.

What they lack in life experience, they often make up for with diligence in research. At the same time, they understand their limited experience and turn to agents not just as transaction facilitators but as consultants. They’re often eager to be introduced to financial advisers, attorneys and loan officers. In many cases, they want parents to be part of the discussion and process, too.

By recognizing their preferences, you can earn their trust and expand your business.

Why They Buy

Alex Wolking, team leader at Keller Williams OneChicago, notes that Gen Z tends to view homes more as financial assets than emotional purchases.

Focus groups conducted by The Klotz Group of Companies in Atlantic Beach, Fla., reinforce that belief. With platforms like Airbnb and VRBO rising in popularity, many Gen Zers view property ownership as a way to generate income, says founder Jeff Klotz.

Brady Byrne, 24, a licensed real estate agent and third-generation broker with The Byrne Group at Baird & Warner, in the Chicago suburb of Naperville, purchased his first home—a condo—during college. “If I decide to buy a second larger home, I’ll keep the first to rent out,” he says. Still, he advises peers to consider renting if they expect major life changes that could require relocation.

Pro tip: Emphasize financial advantages related to size, condition, price, location and amenities. Understand they’ve already done extensive research via Zillow, TikTok and other platforms.

How Size Matters

Many Gen Zers prioritize features over square footage, often preferring smaller homes due to their minimalistic lifestyles and love of travel, Klotz says.

Byrne notes that his Gen Z clients favor walkable locations near bars, grocery stores and restaurants. Walkability often outweighs extra space since “some don’t own cars,” he says.

In Los Angeles, Claire O’Connor says she’s been showing Gen Zers homes of at least 2,500 square feet. These affluent buyers want to entertain and accommodate a growing family, says O’Connor, a sales associate with O’Connor Estates, Berkshire Hathaway Home Services, serving primarily Los Angeles’ Westside neighborhoods.

Jose Prats, director of character homes at Christie’s International Real Estate in Los Angeles, specializing in serving clients looking to buy and sell architecturally significant houses, says Gen Z buyers are more interested in how a home functions—especially for remote work—than its size. “The ability to customize or adapt spaces to fit is often more important than total size,” he says.

Pro tip: Highlight walkable locations and how to maximize usable space.

What Locations Appeal

Although walkability is a selling point of many Gen Z buyers, preferences vary by market. In Los Angeles, for example, affordability is pushing Gen Z buyers beyond the city center. There, homes with architectural charm—like Spanish and Craftsman styles—are gaining popularity, says Prats.

Pro tip: Don’t bring any preconceived notions to the table. Take time to understand each buyer’s lifestyle, tastes and budget.

How They Plan to Pay

Financing strategies vary widely. Some Gen Zers are open to co-purchasing with friends or family, while others save independently. Wolking notes that several of his Gen Z clients saved over $100,000 for a down payment.

Pro tip: Start the conversation on financing early so you can meet them where they are.

Condition and Amenities

Prats says Gen Z buyers he’s worked with prefer to pay a premium for quality. Some are open to light maintenance or renovations if it gets them more character or outdoor space, he says.

One reason move-in ready appeals to Gen Z buyers: They may lack the experience to envision improvements. Plus, funds are often tight—which may discourage them from taking on the unknown expense of renovations.

Pro tip: Help Gen Z buyers envision improvements, and be transparent about the extent of needed updates or repairs.

Amenity Priorities

Gen Z buyers starting careers may be short on time and so may seek low-maintenance living: no lawn care, snow removal or roof issues, Byrne says.

Outdoor space is highly valued. For condo purchasers, that could mean a balcony or roof terrace, Wolking says.

Prats highlights additional priorities: smart home tech, sustainability and flexible layouts to support remote work. Opinions on pools and gyms are mixed—some see value, others view them as costly burdens. Above all, Gen Z buyers want a home that reflects their identity, says O’Connor, often in the form of open layouts.

Pro tip: Ask questions about clients’ lifestyle preferences and, if possible, follow them on social media. Take note of what they’re consuming and what they seem to favor in house and lifestyle trends. Their exposure to the local culture scene or to popular amenities—from saunas and plunge pools to vegetable gardens and composting— can significantly shape their preferences, Prats says. “I post on Instagram and have more than 100,000 followers. Analyzing the data, I see they like older homes with curb appeal, warmth and character or a soul rather than sterile modern boxes.”

First-Time or Forever Home?

Because many Gen Z buyers in the Jacksonville, Fla., market where Klotz operates are interested in income and resale potential, they may not be seeking the traditional starter home. Prat says resale potential is also a priority in his market but says practical limitations can open Gen Zers up to starting small.

Pro tip: For buyers who are seeking a great investment or forever home but who need to make compromises, show how a property can serve them now and grow with them. Leverage visual tools—photos, floor plans and drone videos—to make the listing pop, Wolking says.

What Other Information to Offer

As a general rule, Gen Z buyers haven’t had many years in the business world. As a result, in comparison with older buyers, they may place more value on your experience and guidance.  

Wolking says Gen Z buyers look to him for information on such topics as negotiation strategy, financing guidelines and the value of a home inspection. Byrne adds that Gen Z buyers may have questions on what HOA fees cover and what a lawyer or title company does.

It’s all on the Internet, Wolking says, but they look to their salesperson to interpret it all.  “Because I’m a millennial, I understand these needs. I also work with other generations and see how Gen Z seems to trust salespeople more than older buyers do.”

Pro tip: “They follow agents, investors and financial influencers who break down the process,” Prats says. You can help by filling in what’s missing and what's most accurate. “A lot see information on social media but come to you for a reality check,” Byrne says.