For many young people, the idea of owning a home has long been associated with the traditional American dream. But for the youngest generation of adults, known as Gen Z, the dream of homeownership is taking on a new twist: real estate investing. With technology and know-how at their fingertips, Gen Zers are poised to reshape the housing market as they claim their slice of the pie.
Unlike previous generations, Gen Zers have grown up in a time of skyrocketing home prices. But while their immediate predecessors, the Millennials, have been wary of investing in real estate due to the fallout of the Great Recession and housing market crash, Gen Zers are eager to get in on the action.
In a 2020 survey by Gen Z Planet, a research and advisory firm, 87% of Gen Z respondents said they wanted to own a home in the future, with 68% viewing homeownership as a way to build wealth. A separate survey by online lender RocketMortgage found that 86% of Gen Z respondents want to buy a home, and 45% plan to do so within the next five years. But Gen Z’s approach to real estate investing is different than that of previous generations. Rather than simply buying a home to live in, Gen Zers are taking a page from the investor’s handbook and buying properties as a means of generating income.
Soli Cayetano, a 22-year-old college graduate from the San Francisco Bay Area, is one such example. After doing some research and dipping into her savings, Cayetano purchased a two-bedroom house in Cincinnati for just under $100,000. She had no plans to move to Ohio; instead, she fixed up the property and put it on the rental market. Today, almost three years later, she manages that property remotely from California and has built a mini real estate empire of 36 units.
Cayetano is not alone. Many Gen Zers are turning to real estate investing as a way to escape the traditional nine-to-five grind. With the rise of remote work and the gig economy, young people have more flexibility than ever before to pursue alternative investments. And with technology at their fingertips, they have access to information and resources that previous generations could only dream of. Real estate podcasts, online investing forums, and social media platforms like Instagram are all valuable tools for Gen Z investors looking to learn and connect with others in the field.
Of course, Gen Z’s foray into real estate investing is not without its challenges. The housing market remains highly competitive, and many Gen Zers are still burdened with student loan debt and other financial obligations. But with time on their side, Gen Z investors are poised to make a lasting impact on the housing market. As they scale corporate ladders and amass savings, the ranks of Gen Z homeowners and investors will almost certainly grow.
The traditional American dream of homeownership may be evolving, but for Gen Z, the dream of building wealth through real estate investing is just beginning. As this young generation takes its place in the housing market, it will be fascinating to see how their unique perspectives and strategies shape the industry for years to come.
