header blog article Gen Z Entering Home Buying Market

Gen Z is Entering the Home Buying Market - Are You Prepared? (A Guide for Home Builders and Remodelers)

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It seems like just yesterday the iPhone was released and TikTok was still the sound a clock made. As much as it can make you feel a little “old”, it’s important to realize that Generation Z — those who grew up with access to smartphones, the internet, and social media — is already entering the home buying market.

So the question for you as a housing professional is....are you prepared?

In this 5-minute read, we’ve compiled some pro tips to help you understand Gen Z and adapt your construction or remodeling business to meet their needs.



What Does this Change in the Market Mean for You?

Generation Z (or Gen z) refers to those born between 1997 and 2012. That means they never knew a world without easy access to the internet, instant answers to their questions, and digital advertising. And because of that, their purchasing habits and housing needs are drastically different, even from the millennials that preceded them.

Here’s what that means for you.


Home Builders

While a lot of millennials prefer to rent, most Gen Zers say they prefer to own, and the stats are proving it.

  • Gen-Z mortgage applications have skyrocketed up 124% from March/2020 to March/2021
  • 87% of Generation Z wants to own a home before the age of 35

So as a home builder, you can expect to see more and more Generation Z clients in the coming years.

But what are they going to want in a home?

Generation Z is the first fully digital generation. Technology has shaped every aspect of their lives and you can expect it to heavily influence their home preferences too.

So think...smart homes. A three-way dimmer switch isn’t going to impress them. Get ready to include smart thermostats, cameras, locks, entertainment systems, security systems, and similar smart home features into your home designs.

Generation Z is also a creative generation that values originality. They grew up watching DIY Youtubers and HGTV so they’re less likely to want a pre-built cookie-cutter home that looks the same inside and out as 20 other homes on their street.

That means you’ll find more Gen Zers who want to customize their space. Get ready to offer them more design options during the planning process or even offer completely customized home designs.
And since Gen Zers are used to technology, you’re going to have to use more than black and white blueprints to get their attention. So as a home builder, it’s time to start adding computer-generated designs with detailed 2D plans and high-definition 3D renderings to your workflow.

Modern house 3D rendering designed with Cedreo
Crafstman 3D render designed with Cedreo

*Having a home design program like Cedreo makes it super easy to adapt designs to your client’s tastes. Plus you can showcase designs with 3D renderings that Gen Zers expect to see as part of a home proposal.


Remodelers

The same things that influence Gen Zers’ home-buying choices will also move them to hire more remodeling contractors.

Gen Zers tend to be more frugal than millennials, so it’s also likely that more will lean toward purchasing fixer-uppers. Add to that their creative desire to make a completely original space and what do you get?

Calls to remodeling contractors!

That’s right, you can expect to see more and more Gen Zers hiring remodeling contractors in the coming years to help them fix up and customize the homes they’ve bought.

So if you’re a remodeler, you need to get ready.

  • Are you up on how to install the latest smart home systems?
  • Can you produce computer-generated designs that attract modern clients?

Another thing that you need to keep in mind is that Gen Zers depend on modern technology to communicate their ideas. So instead of verbally explaining your ideas for their remodel, you’ll need to show them virtually.

That means throughout the planning process, you’ll need to use a combination of 2D plans and 3D images (like ones you can make with Cedreo) to effectively communicate your ideas. And you’ll also need to be ready to quickly adjust your designs based on each client’s needs and wants.

3D visual of a kitchen designed with Cedreo
3D rendering of a bathroom designed with Cedreo

*Try Cedreo today for FREE and see how easy it is to create modern, customizable home designs.



How to Prepare for Gen Z Home Buyers

With so many Gen Zers entering the housing market in the next few years, what else can you do to be ready as a housing professional? Here are 4 ways you can adapt and prepare your housing business for Generation Z home buyers.


Mobile Friendly

If you want to grow your business, you need an online presence and it needs to be mobile-friendly. That’s because mobile website visits have finally overtaken desktop visits. In fact, Gen Zers spend on average over 4 hours a day on their phones.

What you should do: Don’t forget to make sure your company’s website loads quickly and is easy to navigate on mobile devices. Gen Zers tend to have shorter attention spans so if a website takes an extra second or two to load, there’s a good chance they’ll click off of it.


Communication

Ever texted someone first to see if you can call them? In the modern world, we text more and call less. The same is true of Gen Zers — they do not like phone calls.

What you should do: Make it easy for people to contact your business through text messages. One easy way to do that is with GMB (Google My Business). Download the Google My Business app and set up your account so people can message you and request quotes right through your GMB profile.


Social Media

Social media isn’t just for celebrities. Modern construction professionals can leverage social media to get the attention of and build trust with potential Gen Z clients. And with Gen Zers spending an average of 4.5 hours a day on social media, creating a social media presence is no longer just an option, it’s a necessity.

*Did you know? The top social platforms for Gen Zers are Instagram, YouTube, and TikTok.

What you should do: Instead of focusing your marketing efforts on cold calls and emails, work to build a social media presence. Post before and after pictures, share design ideas, introduce your team, and showcase 3D renderings for potential projects.

And remember, Gen Z is not a fan of phone calls. So use social media direct messaging to contact and interact with potential clients.


Reviews and testimonials

Since Gen Z is a digital generation, they rely on online reviews when making purchases. And since Gen Zers value originality and authenticity, they respond very well to genuine reviews from people who share their same values.

What you should do: Encourage customers to leave reviews on places like your GMB or Yelp profiles. And to attract and influence the younger generation, focus on getting Gen Z customers to leave you reviews or even mention you on their social feeds.



Conclusion

Ready to adapt your housing business to attract Generation Z customers? It’s important to start implementing small changes now so you can get ahead of the curve.

So don’t forget…

  • Start building a social media presence
  • Make sure your website and online profiles are up-to-date and optimized for mobile
  • Get ready to adapt your project proposals to Gen Zers’ unique needs

One of the best places to start is with an easy-to-use 3D home design program like Cedreo.

  • Create stunning 3D renderings to share on social media
  • Quickly adapt home designs to your client’s tastes
  • Save valuable time that you can use for things like engaging prospects through social media

Start using Cedreo today and join 1000s of other housing professionals who’ve already taken their business into the 21st century!

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