They say that Generation Z is the future of the world, but are they ready for real estate acquisition. There are more Gen Z individuals contributing to science, the environment, communities, and even the economy. Gen Z people are big spenders because of their baby boomer inheritance and Gen X parent's financial mentality. Millennials are not yet part of this conversation because their kids are babies. There is no name for that generation yet.
Now, how does real estate affect Gen Zs? These people are more knowledgeable because they were raised in the age of information. Since they were children, they had access to the internet with high speeds that taught them many stupid things, but also many brilliant concepts.
Examples include 11 year-olds building sneaker empires, 16 year-olds getting Nobel Peace prizes, 18 year-olds owning billion-dollar companies. This generation even has the highest number of scientists, both acknowledged and self-proclaimed. This generation will be richer than all generations combined, without destroying the financial market and the environment.
Gen Z people are aware of what is happening to the real estate market. They already buy stocks using their allowances, so it’s not a surprise that they will go with real estate acquisition. Some have already started and have become property managers at such a young age.
They have the money. They have the know-how. They are the best demographic for real estate because they buy in a different way millennials, Gen X and Baby Boomers do. Millennials buy for the present. Gen X buy for the wealth. Baby Boomers buy for their legacy.
So why does Gen Z buy real estate? They buy it so they can use the investment to turn it into bigger investments in different sectors of the economy, including the environment.
Yes and no. Yes, if they study the market, put their money where they have secure returns, and buy when the time is right. No, if they don’t have the money yet. Generation Z abhors debt. They are the generation that is fighting the laws that benefit the rich, such as student loans, unregulated real estate loans, predatory personal lenders, and such.
They are wiser about money because they saw history and are applying the never repeat itself mentality. They are innovative, smart, and patient when it comes to spending. However, they are aggressive when it comes to moneymaking.
As mentioned before, some come from inheritance and stock trades. However, many Gen Z individuals are making their own money by investing in small businesses and utilizing the tools that they are experts at using, namely social media.
There are more Gen Z businesses right now opening each day and launching online. It is also possible to start with nothing but a phone and an internet connection. What happens next is that they invest in learning. That’s when they scale up and get the money to buy real estate. Now, what’s your generation and how would you like to proceed with real estate?