Unlike their millennial predecessors, the next generation actually values homeownership earlier in life. According to a Realtor.com survey, Generation Z is twice as likely as previous generations to be saving or planning to save for a home by age 25. Around 40 percent of them aspire to become homeowners by that age.
Having faced the economic hardships of the Great Recession, millennials might simply be more realistic than their younger peers. However, it does appear that these current college students and recent grads seem to value higher-paying jobs and economic advancement more than their snowflake counterparts.
Also, the survey found that Gen Zers are actually putting their money behind their plans. Post-millennials who seek homeownership are more than twice as likely to have started or plan to start saving for a home before age 25 than millennials or Gen Xers. The Center for Generational Kinetics found that 21 percent of them had a savings account before age 10, and 12 percent have already started saving for their retirement.
This is a generation that is serious about saving money.
Interestingly enough, they are not looking at home ownership for investment reasons or tax benefits but instead cited the ability to customize their space (61 percent) as a leading factor. About 55 percent also said they would like to raise a family in a home that they owned, offering a glimmer of hope to those who believe young people have no interest in traditional values.
While millennials have become notorious for moving back in with their parents, Gen Zers are looking to their parents for a different type of support. About 56 percent of Gen Zers surveyed said “maybe” or “yes” to expecting or receiving financial help from family. To be fair, millennials at their age would have been hard-pressed to find the same kind of monetary support, as many of their parents faced hard times during the recession.
Still, Gen Z is not falling into the same pitfalls as their millennial counterparts. They saw their siblings and their parents suffer through wage stagnation and burdensome student debt. As a result, they are purposely pursuing less expensive educational paths and seeking out the best financial aid strategy as they pursue higher-paying job opportunities.
In other words, they are being smarter about money. Millennials should take note, or else, they may soon be paying rent to Generation Z.
[Also read: How millennials can relate to George H.W. Bush]
Brendan Pringle (@BrendanPringle) is writer from California. He is a National Journalism Center graduate and formerly served as a development officer for Young America’s Foundation at the Reagan Ranch.
