14 real estate trends Gen Z buyers are looking for

Baby boomers and millennials have dominated the home-buying conversation in recent decades, but a new generation of homeowners is browsing online listings, heading to open houses and planning their home-buying budget.

Gen Z — born between 1997 and 2012 — is making waves in the market with their approach to homebuying. Here are 14 real estate trends Gen Z buyers won’t pass up.

1. Smart home technology is not optional

Gen Z marks the first generation of true digital natives. This group was raised on technology and expects their homes to be outfitted accordingly.

Gen Z homes should come standard with smart-home technology, such as smart thermostats, motion-sensing security systems with notifications, and lighting and environmental controls that can be adjusted from a mobile phone. Voice-activated assistants, such as Alexa or Google Home, are also a plus. 

Gen Z is a mobile-first generation, so all tech needs to be optimized for their devices. This applies to marketing available homes on the market. To capture Gen Z’s attention, make sure there are options to communicate digitally and that virtual home tours are available on demand.

2. Gen Z likes to stay close to home

With the continued trend of remote work and little desire for a long commute, Gen Z buyers are moving to homes in walkable communities with nearby amenities. Full-time or part-time remote workers in this generation might even go for smaller homes near coworking spaces or business facilities.

3. Gen Z wants a separate space for business

One thing Gen Z likes to keep behind closed doors is their work. For those who work remotely full time and can’t utilize a coworking space, a dedicated home office is a must. A home office doesn’t need to be extravagant, but being able to shut the door on a workspace when the day is done is a must for a generation that strives to accomplish a proper work-life balance.

4. Gen Z prefers an open floor plan

Gen Z likes the flexibility that open floor plans provide, and they feel better about their homes when they are open and expansive.

5. Outdoor space is important

Another side effect of the pandemic is a desire for functional, comfortable outdoor space. A balcony, patio, terrace or rooftop deck is a huge draw for a generation that views these spaces as a place to relax, entertain and maintain a small garden.

6. Sustainable, energy-efficient homes are not optional

Gen Z buyers prioritize eco-friendly and energy-efficient homes. This generation wants to save money on utilities, but they also want to do what they can to be more gentle with the environment.

Gen Z buyers will look for homes with solar panels and energy-efficient appliances and finishes. Bamboo flooring, recycled glass countertops and energy-efficient windows are all attractive incentives for the Gen Z buyer.

7. Inclusive communities matter

Gen Z is not like previous homebuying generations, who valued homogeneous neighborhoods with like-minded people. Gen Z values diversity and inclusivity. They want their neighborhoods to reflect their values and are more likely to seek vibrant, multicultural areas with a mixed bag of socioeconomic inhabitants.

As a result, they might be more open to neighborhoods in transition or those being managed and improved by community-based organizations. 

8. They need more affordable housing

Even though Gen Z buyers are mentally ready to become homeowners, the financial challenges associated with buying a home are real. Although some enterprising and lucky Gen Z home buyers locked in incredibly low mortgage rates during 2020 and 2021, those who weren’t ready to buy now have to contend with interest rates as high as 8%.

In addition to high interest rates, low housing stock means homes are still expensive. Consequently, Gen Z buyers may be open to alternative types of housing that their parents and grandparents shunned. Tiny homes, co-living spaces and shared housing arrangements are ways to reduce the cost of homeownership, as well as negotiating real estate agent commission.

9. Gen Z prioritizes aesthetic appeal

Gen Z is among the most visually motivated and stimulated generations. They love a beautiful space, and they believe the visual aspect of their home reflects who they are. Homes that are not visually appealing may not get attention from Gen Z, so agents should help these buyers see the renovating and redecorating possibilities to match their personal aesthetic.

10. Easy renovations are key

For spaces that might not be immediately appealing, Gen Z wants those that can be easily renovated. They prize move-in ready homes that can be updated with fresh paint, new flooring and modern fixtures. They aren’t necessarily interested in a property that needs a complete renovation.

11. Flexible design matters

Flexible design goes beyond rooms with multiple functions or a layout that can be easily changed. Think walls that can be knocked down or added without too much fuss.

12. Gen Z will move for the right home

Like their millennial forebears, Gen Z is willing to relocate for the right home. These moves are usually to more diverse coastal cities with employment opportunities and good walkability, but many in this generation are also moving inland to well-designed communities that are more affordable.

13. Gen Z buyers are more educated

When it comes to home-buying education, it’s not the college degree that matters. Gen Z is so comfortable and versed in the digital landscape that these buyers are some of the most educated clients. They know how to navigate virtual open houses, manage electronic documents and handle complicated internet searches. They come to agents knowing how to find and view homes, but they still have questions.

14. Gen Z wants professional guidance

Even with their digital capabilities, Gen Z knows that homebuying is a complicated, sometimes daunting, undertaking. From securing a mortgage to navigating closing, the entire process is fraught with potential roadblocks. That’s why this generation isn’t scared to ask for help. They are looking for affordable real estate professionals who understand them and their needs.

Get all the details at HousingWire.com

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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New Interest from City Dwellers Rise Prices in Rural Areas

The pandemic is pushing homeowners out of the big cities and into rural and suburban areas, pushing up home prices in previously sleepy towns.

In July, less densely populated areas showed more buyer interest than urban areas, Redfin said. Before the pandemic, 9% of homebuyers said they were searching for a home in rural areas. Now, 19% say they are looking at rural options.

The median sale price of homes in rural areas increased 11.3% year over year in the four weeks ending Aug. 2, and rose 9.2% in suburban areas, while homes in urban areas had a smaller home price increase at 6.7%.

“We’ve been speculating about increasing interest in the suburbs and rural areas since the start of the pandemic,” said Redfin Economist Taylor Marr. “Now we’re seeing concrete evidence that rural and suburban neighborhoods are more attractive to homebuyers than the city, partly because working from home means commute times are no longer a major factor for some people.”

As a result of COVID-19, 13% of homebuyers had searched for homes in a different area than originally planned, according to a Redfin survey conducted from July 19 through 21.

Before the pandemic, 37% of homebuyers said they were looking for a home in an urban area, compared to 19% now. The number of homebuyers looking in the suburbs grew – 43% said they were looking for a home in the suburbs before the pandemic and 50% said they are looking in the suburbs now.

Home supply in rural areas went down 37.9% year over year, and down 31.8% in the suburbs in the four weeks ending Aug. 2, Redfin said, compared to a 21.3% decline in urban areas.

Meanwhile, new listings in rural areas fell 14.2% year over year, and dropped 3.6% in suburban neighborhoods. In urban areas, new listings remained flat year over year.

To read more, go to Housing Wire.

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Sherwin-Williams Predicts Top Paint Colors of 2021

We’re officially at the halfway point of 2020—and Sherwin-Williams has already moved on to 2021. The company’s experts pulled together its annual Colormix Forecast, highlighting the paint hues they predict will be everywhere next year. With 40 shades to peruse, there’s plenty of inspiration to see you through your next makeover. 

The report is sorted into four unique palettes, each one meant to evoke a different feeling. We flipped through the swatches to pull our own curation of the trending colors—here are the combinations we’re loving, according to what mood you want to create at home.

Inspired by smart living and technology, Continuum is a hyper-invigorating color scheme. You might not think that electric yellow and lavender go together—and ordinarily we might agree with you—but with a grounding hue like navy as the base, this fun pairing definitely makes a splash. Start small, with DIY door trim to update an often-overlooked surface. 

Soft, muted tones rule in Encounter, a palette that references artisan crafts and a modern bohemian vibe. There are plenty of earthy tints (including terracotta, of course), but we’re equally drawn to the subdued blues and yellows, which are perfect for making your bedroom feel extra-cozy. Just add a few blankets. 

The most neutral-filled combination is Sanctuary, which pays homage to Scandinavian design through an assortment of natural colors. However, no one ever said that neutral had to be boring: Rich, warm shades of berry and olive green are made for elevating gathering spaces, like your living or dining room. Use this trio to set the scene for many future pasta-fueled shindigs. 

We could all do with a bit of optimism, and that’s where Tapestry comes in. Described as a curated take on maximalism, it’s full of zingy hues like bubblegum pink and periwinkle blue. Consider this your chance to try a freehand mural: Dress up an empty wall with a custom design that will make you smile every time you pass by. 

For design inspo, go to Domino and Real Simple.

Related Links

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Would you buy a home sight-unseen? You might be surprised how many people are.

More home shoppers are willing to buy without seeing the property first

Would you buy a home sight unseen?

During a time when we are told to stay home for our own good, there are still home shoppers out there. But how are they shopping?

According to a survey from Realtor.com, about 25% of shoppers say they would buy a home without even stepping foot in it.

As more people are remaining socially distant, technology is taking center stage. In March, Redfin saw a 94-fold increase in video chat tour requests, while Zillow had a 191% increase in the creation of 3D home tours.

“Uncertainty around COVID-19 and limitations around social interactions and group gatherings like open houses have made buying and selling homes more difficult than ever,” said Nate Johnson, chief marketing officer of Realtor.com. “As real estate agents and consumers seek out ways to safely complete these transactions, we believe that technology will become an even more imperative part of how we search for, buy and sell homes moving forward.”

Despite social distancing guidelines, 47% said they still would prefer to see a home in person with a buyer’s agent; 23% would prefer to go alone; 13% prefer an online video tour and 6% of shoppers preferred their agent going to the home and showing it via video chat.

When asked which technology features were most helpful when deciding on a new home, 61% said they preferred a virtual tour of the home; 58% said they prefer accurate and detailed listing information; 53% preferred accurate and detailed neighborhood information; 51% preferred high-quality listing photos and 39% preferred the ability for the agent or landlord to walk them through the property via video chat.

But does this mean home sellers are comfortable with others touring their homes?

When asked by Realtor.com about selling within the next six months, 56% of sellers said they were comfortable with letting their agent in their home to take photos. Over half of the respondants would allow their agent in the home to give a virtual tour; 47% would let an agent walk a buyer through the home in person; 44% would let the agent walk a buyer through the home via video chat and a whopping 53% would actually hold an open house.

Looking toward some stability in the housing market, 68% said their plans to move or not to move haven’t changed in response to the pandemic. But, of those whose plans have changed, 9% said they weren’t planning to move, but need to now; 14% canceled their plans to move altogether; 9% said they would rent rather than buy and 7% said they would rather buy than rent.

Thanks to virtual advances, 24% of people said they would be willing to buy a home without seeing it in person and 30% said they would be willing to rent one.

While 83% of respondents said their living situation has not changed because of COVID-19, 8% said they moved in with immediate family; 6% moved in with a partner; 2% moved in with extended family and 2% moved in with a new roommate.

Coronavirus in Oklahoma, the home showings must go on, online or in person

Home sales have slowed, but not stopped by a long shot.

Things were looking up in the metro-area housing market at the end of March — the number of listings, pending contracts and prices — and now everything is up in the air because of the coronavirus pandemic.

Sales activity is down, despite a rush to remote showings, virtual open houses and other online options.

In the first three months of the year, Realtors closed 3,681 home sales, 5% more than in the first quarter of 2019, according to the Oklahoma City Metro Association of Realtors.

The average sales price for the quarter was $224,304, up 2.9% compared with January-March of last year. The median price was $192,000, up 5.2% compared with the first three months of 2019.

The number of new listings in March was up 8%, and the number of pending sales was up 4.6%, compared with March 2019, according to the association's statistics for Oklahoma City, Arcadia, Bethany, Blanchard, Deer Creek, Edmond, Harrah, Luther, Midwest City, Moore, Mustang, Newcastle, Nicoma Park, Norman, Piedmont, Tuttle, Warr Acres and Yukon.

Then the pandemic hit, businesses closed their doors, unemployment soared and people started staying in their homes, which left fewer people shopping for houses.

"We've been pulling numbers weekly. We started with a 30-50% decrease in actives three weeks ago, then last week it hit pending sales," said Kacie Kinney, an agent with Keller Williams Realty Elite in Yukon. "Every school district is faring differently. So far, it seems Canadian County is a little more sheltered. Oklahoma County and specifically OKC schools is way down (47+% on actives). Edmond is also taking a big hit.

"This week the state as a whole is down 41% in active listings, 25% in pending listings, and 25% in solds over last week in 2019."

Here is a sampling of what real estate agents are seeing and doing out there, or in there, as the case may be, amid the coronavirus.

Kathy Fowler, managing broker at McGraw Realtors:

"I'm staying home 70% of the time when I would normally be in the office five or six days a week. I'm attending inspections in my car, have shown houses to out-of-state buyers who are nervous about traveling, but still need a house in the metro."

Denise Whitehead, McGraw Realtors:

"Had a buyer who lost out on a $150,000 house in OKC last week. There were four offers on the first day. Had another sale that fell apart due to finances (COVID-19 related). First time ever in 16 years to just 'phone it in' on a listing appointment and also on a closing. It’s weird out there. I’ve been staying busy and showing properties just trying to do it wisely."

Colette Naff, Keller Williams Realty Green Meadow:

"Homes under $175,000 in Moore schools and northwest OKC are still going like hotcakes. Selling in 24 to 48 hours. Multiple offers. One house my buyer bid on had 14 offers on it. I’m struggling with an active listing since March 26, with one showing only. Over 2,800-square-foot home in Edmond. Built in 2012, move-in ready. Unreal this property has not sold. I even have the floor plan and virtual tour video so clients would not have to get out"

Kristin Knox Paradis, Lime Realty::

"So far my deals are holding steady. Was scary for a bunch of them. Lender changes. Appraisal issues. Del City just stopped doing their home inspections for occupancy. We can’t attend closings. My buyers were full force, but my listing isn’t getting traffic. It’s insane."

Lisa Marney, Metro Brokers of Oklahoma::

"We cannot attend closings. However, both my closings since this started went off without a hitch. I have another one that will close on the 30th of this month. We are waiting on the appraisal and it has been completed already. I think if you are choosing the right lenders, your deals will still be OK and on time. However, I have not had any clients need to do down payment assistance or any 'borderline' approved clients moving forward right now.

"I do feel like the homes in their certain price breaks are still going absolutely nuts with people needing to get a home. Inventory is low, buyers are still moving forward when 'their' house comes on the market because they don’t want to risk losing it. I’m still seeing a lot of multiple offers in those areas. For example, $150,000 in Edmond, or maybe four beds and a bonus room for under $300,000. I do feel like listings are holding out a bit more though, which is causing the buyers to jump because the supply is just so low."

Wondering how this information might be impacting your Oklahoma’s value? We’re happy to check it out, let’s talk!

Related Links:
Listing + Selling Your Home During COVID