Forget the white picket fence. Today’s younger buyers want smaller homes, flexible spaces, and strong local economies.
Why it matters: Gen Z and Millennials are reshaping the housing market. Their preferences offer key insights for sellers, agents, and developers.
Who’s buying: According to 2025 NAR data:
Gen Z (1999–2011): 3%
Younger Millennials (1990–1998): 12%
Older Millennials (1980–1989): 17%
These numbers are growing fast. Here’s an in-depth look at what these younger buyers seek.
Smaller homes, smarter choices
Affordability is top of mind, thanks to higher costs of living and concern about lower wages. These buyers want compact homes with high-quality features.
52% of Millennials would rather have a smaller, better-built home with more amenities than a larger one with fewer amenities (NAHB).
Builders are adjusting: average new home size is 2,150 sq. ft. — the smallest in 15 years.
One-and-done homeownership
Starter homes are out, planning for the long-haul is in.
Buyers under 44 plan to stay in their homes for 16+ years.
Nearly half of buyers aged 18–24 say the same, per the NAR.
Why? High costs, upkeep, property taxes, and insurance make long-term planning essential.
Location = lifestyle
What younger buyers want: jobs, culture, and walkability.
Where they’re going:
Gen Z: Lincoln, NE; Tuscaloosa, AL; Eugene, OR; Toledo, OH; South Bend, IN-MI
Millennials: Sioux Falls, SD; Amarillo, TX; Denver, CO; Clarksville, TN-KY; Corpus Christi, TX
Millennials without children: San Diego, CA; New York, NY; Denver, CO, Orange County, CA; Los Angeles, CA
They’re drawn to affordability, available housing, and tech-forward cities with vibrant communities. The COVID-19 push to the suburbs has subsided.
Flexible layouts
Gen Z and Millennials want homes that adapt. Think multipurpose rooms:
A home office that becomes a nursery, then a gym
Open floorplans that can adapt with the household
Outdoor living space
Many also look for rental potential to offset the mortgage. More than half (57%) are open to buying a fixer-upper — if the price is right.
Smart and sustainable
As the generations most passionate about sustainability, they’re looking for homes furnished with:
Energy-efficient appliances
LEED or Energy Star certification
Green spaces and renewable energy
Smart energy use monitoring
High-speed internet for remote work and streaming
Smart tech in every room, from TVs to doorbells to thermostats
These buyers want homes that are efficient, connected, and built for the future.
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