A new survey from NewHomeSource, Understanding Our Next Generation of Homebuyers, finds that 63% of Gen Z would relocate to a new city or state to buy a home. Compare that to the 19% who say they'd rather just spend more. The generation that came of age watching millennials get squeezed by rising prices isn’t willing to settle in order to settle down.
"Gen Z is showing a real shift in how they think about homeownership," said Ali Wolf, chief economist at NewHomeSource and Zonda. "The goal of owning a home is still absolutely there for this generation, but they're approaching it differently. Rather than stretching financially to buy as soon as possible, they're setting clear financial boundaries and expanding their search, often across city or even state lines, until they find the home that fits their budget and lifestyle."
Nearly half of the respondents say they plan to relocate in the next one to three years, with the top reasons being connected to lifestyle rather than home buying. Lifestyle and quality of life (27%), a new job (21%), and being closer to family (21%) topped the list, while affordability came in sixth. This is a sharp contrast to millennials, who ranked it as their No. 1 reason for moving when asked a similar question five years ago.
Willing to Move, Not Break the Bank
Thirty-nine percent of Gen Z plan to buy within the next five years. When asked what they'd actually be willing to do to buy, Gen Z's top answers all pointed to location:
Relocate to a less expensive area within their state (35%)
Explore a different neighborhood (33%)
Relocate to a more affordable state (28%)
Increasing their budget (19%) landed all the way down at No. 6. And most aren't willing to move the needle much on increasing their monthly costs. The majority won't go past an extra $300 a month, and within that group, most cap it closer to $150.
A Hard Line on Spending, a Soft Spot for Space
Another thing Gen Z won’t budge on? The home itself. Respondents said they'd rather relocate than buy smaller, settle for lower-quality finishes, or lose out on amenities. Their wish list:
A large backyard (32%)
A garage (32%)
A pool (28%)
A large kitchen (27%)
"Previous generations often bought a home first and built their lives around it," said Karyn Bonder, NewHomeSource home trends expert. "Gen Z is doing the opposite. They're waiting until they have the lifestyle they want, then looking for a home that supports it. That's why we're seeing strong demand for features that enhance everyday life, from backyards built for entertaining to larger kitchens and flexible garages."
The Suburbs Are Cool Again
Younger generations have long been associated with urban living, but Gen Z is bringing a plot twist to that narrative: 53% say the suburbs are actually their ideal place to live. The sweet spot is a community that blends the two, with the top preference being a suburban setting with walkable, urban-style amenities, giving them small-town space with big-city convenience close by.
Same Dream, New Rules
Gen Z still wants the American Dream, but not at the cost of their wallet or lifestyle. In the meantime, they’re willing to wait and widen the search until the numbers and the features both work.
The next generation will also influence home design and construction as they enter the market. Builders should keep in mind design features that will draw in Gen Z buyers, and highlight new home community amenities that provide an urban feel without being in a big city.
