Better Homes and Gardens Real Estate conducted a first-of-its-kind survey to 1,000 Generation Z teens (ages 13-17), and its results showed that this future generation of homebuyers is fairly traditional in their beliefs concerning the American Dream. This survey was used as a tool to progress the company’s thought-leadership strategy, as they continue to look forward to the future of the housing industry and the ever-changing consumer landscape.
BHGRE hopes to promote these findings as part of their bigger public relations strategy to further their brand awareness through media coverage, such as the article featured this month in Money Magazine, which went into detail about the survey.
“We’ve researched baby boomers, millennials, the luxury consumer and a variety of cultures and ethnicities to help our network and the industry as a whole become as knowledgeable as possible on the changing consumer landscape wit in real estate,” said Katelyn Castellano, Director of Communications and Events for Better Homes and Gardens Real Estate. “At this point in time, millennial research is quite plentiful, including research of our own. We believed it was time to take a look at what’s next. No one in the industry has explored this generation to such an extent, and it’s a necessary progression in generational consumer research.”
This survey found that a surprising 97 percent of post-millennials believe that they will own a house one day, and 82 percent say it’s the most important aspect of the American Dream. More than half of those who took the survey revealed that they would give up social media for a year and do double their amount of homework if that guaranteed they would be able to buy a house in the future.
One survey finding that surprised BHGRE came when the company asked the aforementioned 97 percent to give an estimate on what they would spend on a house. Those survey takers provided an average response of $274,323.00, which is very close to the median home value of $273,500.00.
“We were shocked that what they expected to pay for their first home was extremely accurate in comparison to US census data,” said Castellano. “They weren’t simply throwing out unrealistic numbers.”
Half of the survey takers said they know more about money than their parents did at their age. Two-thirds have built up their knowledge of money matters from discussions at home, while two in five attribute their knowledge to discussions they’ve had at school.
“While this generation is getting a lot of information digitally, they really do value the conversations they have with their parents,” said Castellano. “It’s important that parents understand the impact they have on their children. Today’s teens are living in a world molded by their parents’ fiscal and parental decisions, and we see how much of an impact a parent’s wisdom has on their kids. School curriculum is also vital. Generation Z is gaining context and knowledge now that will stay with them into the future.”
The survey found that three in five teens have already started saving for their future homes, and post-millennials, on average, aspire to own a home by the time they’re 28, which is three years earlier than the median age of first-time homebuyers reported by the National Association of Realtors. Castellano realizes that while those savings may be going towards higher education, teens are investing in their future.
“They understand that you need a financial plan in place to achieve life’s certain milestones,” said Castellano. “As they embark on the home-buying process with such a conservative, thoughtful mindset, it increases the probability that they’ll not only make a sound investment, but will reap the benefits of the American Dream that continues to live on.”
Sources Better Homes and Gardens Real Estate Money Magazine