Millennials and Gen Z aren’t just shaking up social media trends and snack preferences—they’re also transforming the real estate market in big, bold, and sometimes rather unexpected ways.
These two generations now represent the largest share of homebuyers, renters, and soon-to-be investors. They’re tech-savvy, values-driven, and more likely to research a neighborhood’s walkability score than ask about square footage.
So what does that mean for real estate professionals? It’s time to understand what these generations want, and how the industry needs to adapt to stay relevant.
First, Let’s Talk Numbers
According to the National Association of Realtors (NAR), Millennials (ages 27–42) now make up 28% of all homebuyers, while Gen Z (ages 18–26) is just beginning to enter the market in a meaningful way.¹ And with Baby Boomers aging out of both the workforce and active homeownership, Millennials and Gen Z are poised to dominate the market for decades to come.
The kicker? They’re not following the traditional real estate playbook.
What These Generations Want from Real Estate
Millennials and Gen Z are rewriting the rules—here’s how:
1. They’re Buying Later, But They’re Buying Intentionally
Thanks to student debt, wage stagnation, and sky-high housing prices, many Millennials delayed homeownership. But now that they’re buying, they’re doing it with purpose.
They’re less interested in “starter homes” and more focused on properties that align with long-term goals—like space for remote work, room to grow a family, or multi-generational living options.
2. They Care About Sustainability and Community
These generations are values-driven. They want eco-friendly homes, energy-efficient appliances, and walkable neighborhoods with green space, local shops, and a sense of community.
According to a report by Deloitte, Gen Z ranks climate change as their #1 concern, and Millennials aren’t far behind.² Translation: LEED certifications, solar panels, and low-emission building practices aren’t just nice-to-haves—they’re market differentiators.
3. They Expect a Digital-First Experience
These buyers grew up online. They expect virtual tours, e-signatures, real-time messaging, and listings that feel more like Instagram than Craigslist.
If your tech is clunky or your communication is slow, you’ll lose them before the second showing.
4. They’re Exploring New Ownership Models
Millennials and Gen Z are open to alternatives (sometimes out of necessity thanks to those reasons listed in #1): co-buying with friends or family, fractional ownership, rent-to-own models, and investment in real estate through platforms like REITs and crowdfunding.
They’re financially savvy, and know both the power of owning real estate and that homeownership isn’t the only path to wealth-building.
Renting Isn’t Going Away
Let’s not forget: a large portion of Gen Z and younger Millennials are still renting—and likely will be for years to come. But they’re not just looking for four walls and a roof.
They want:
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Community amenities (hello, coworking space and dog parks)
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Smart home tech
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Flexible lease terms
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Purpose-driven branding (yes, even in apartment complexes)
Multifamily developers and property managers who cater to these desires are seeing higher retention and stronger ROI.
What This Means for Real Estate Pros
If you want to stay competitive:
Embrace tech. Your listings, communication, and processes need to be mobile-first and seamless.
Know your audience. These buyers and renters do their homework. Be ready to answer questions about sustainability, community, and long-term investment.
Highlight flexibility. From floor plans to financing, flexibility is a huge selling point for these generations.
Most of all? Be human. Millennials and Gen Z value authenticity over sales pitches. Show up with knowledge, empathy, and a willingness to help them navigate this complex market.
Millennials and Gen Z aren’t ruining real estate—they’re just doing it differently. And in doing so, they’re creating opportunities for innovation, inclusivity, and smarter, more sustainable growth.
For real estate professionals ready to evolve, the future looks pretty bright. If you want to make sure your firm has the right leadership to evolve, too, we can help.
Citations:
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National Association of Realtors (2024). Home Buyers and Sellers Generational Trends Report. https://www.nar.realtor
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Deloitte. (2023). 2023 Gen Z and Millennial Survey. https://www2.deloitte.com
