Gen Zers also are called Centennials.
Gen Zers are the generation behind Millennials.
Gen Zers want to own homes.
By Ryan Carter
Tired of hearing about the Millennials?
What they want from work? Where they want to live? What color of socks they prefer?
If you’ve had your fill of Millennial talk, you’re not alone. Even Millennials are tired of hearing about Millennials.
So this month we’ll ignore the Millennials, and take a look at the next emerging generation: the Centennials, also known as Gen Zers.
But first the market data from last month.
August was a good month for buyers and sellers along the Front Range.
As expected, the frenzy has calmed a bit, giving buyers an easier path to the closing table.
At the same time, sellers still enjoy the benefits of strong demand, low inventory and prices that are typically 5 percent or 10 percent higher than last year.
The volume of real estate sold across all Front Range markets increased 5.7 percent on a year-over-year basis. On a month-over-month basis, sales volume increased 1.2 percentin August, defying the typical end of summer slow down and perhaps signaling a strong finish for 2016.
The inventory of homes for sale remained a scant 1.7 months, putting a temporary hold on any movement to more balanced inventory levels of 5 to 7 months.
In Jefferson County, sales volume increased 7.1 percent on a year-over-year basis in August and also increased 15 percent month-over-month.
The supply of available homes in Jeffco fell slightly to 1.3 months.
Meanwhile, move-over Millennial and welcome Centennials.
While everyone was talking about the Millennials, a new generation came along.
Allow us to introduce the Centennials – also referred to as Gen Z, which naturally is the name we prefer to use at 8z.
\Members of Generation Z are currently aged 9 to 21 and will be buying homes before we know it.
There are 55 million of them, about 17 percent of the US population.
Gen Zers are digital natives who don’t make much of a distinction between the physical and digital worlds.
They are mobile first and expect to access content on demand (YouTube, Netflix) on their phone anytime, anywhere.
The first thing a Gen Zer does when arriving at a new location is ask, “what’s the WiFi password?”
What do Gen Zers think about real estate?
They love it. In fact, 97 percent of Gen Zers believe they will one day own a home, according to a recent survey of more than 1,000 teens.
Eighty two percent of Gen Zers say homeownership is the most important part of the American dream, beating out other life goals like getting married, having children, or going to college.
Of course, young adults of all generations have always had aspirations.
Gen Zers, however, are more than just dreamers.
They are realists and they are financially savvy.
Asked for an estimate of what they might spend on a house, aspiring homeowners gave an average response of $274,323 —strikingly close to the median US home value of $273,500.
In fact, some of them have already started saving, three in five according to a recent survey.
Gen Zers, on average, aim to own a home by age 28—three years earlier than the median age of first-time homebuyers reported by the National Association of Realtors.
The impact of Gen Zers on the real estate market, of course, is limited at this time due to their young age.
The Baby Boomers still rule the supply side of the equation.
Boomers control nearly 66 percent of today’s US home equity.
The Millennials are taking over the demand side as they enter the prime home buying years.
But wait, what about the Gen Xers you ask?
They were left out, but that’s ok, they’re used to it.
They’re enjoying their own rising home equity along with the rest of us.
Enjoy the beautiful Autumn weather!
Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. DenverRealEstateWatch.com is sponsored by 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.