Millennials, Gen Z Transform Housing Market

NEW YORK — The North American residential real estate market is experiencing a generational transformation. Millennials and Gen Z are no longer just entering the housing market, they are redefining it. Their expectations, constraints, and lifestyle choices are changing the very meaning of home, and in turn, challenging real estate professionals and corporate mobility leaders to rethink their strategies. Adapting to this shift is now a priority.

Millennials enter the market with purpose

Millennials, born between 1981 and 1996, currently represent the largest share of homebuyers in the U.S. and Canada. Their road to homeownership has been anything but traditional. Burdened by student debt and stagnant wage growth, many postponed their first purchase. Now, as their buying power matures, they’re entering the market with cautious determination. However, their version of homeownership diverges from the norm. In today’s market, affordability plays a dominant role in decision-making, and the pandemic's lasting effects have reshaped how they view space and lifestyle.

Beyond price: Lifestyle-driven decisions

The traditional urban starter condo no longer appeals to many millennials. With housing prices in cities like San Francisco, Toronto, and New York reaching unattainable heights, millennials are increasingly migrating to suburban and exurban communities. Here, they’re finding homes that offer more space at a lower cost ideal for raising families and accommodating hybrid or fully remote work. But this isn’t just about price. It’s about lifestyle. The home has become a workplace, a school, a daycare, and a refuge. Buyers now look for properties with dedicated office space, outdoor living areas, and adaptable layouts that can support evolving household needs.

Sustainability is a core priority

Another defining trait of millennial buyers is their strong commitment to sustainability. Raised amid growing environmental awareness, they are placing greater emphasis on energy-efficient features such as solar panels, EV chargers, upgraded HVAC systems, and smart-home technologies. They aren’t just interested in aesthetics, they want long-term cost savings and eco-friendly living. Real estate agents who understand local green certifications, rebate programs and the benefits of sustainable upgrades will have a clear advantage in attracting and retaining millennial clients.

Corporate mobility and millennial expectations

For corporate mobility professionals, these shifts present unique challenges. Millennials, now well into their 30s and 40s, are often juggling family obligations, student loans and rising living costs. As a result, they’re far less willing to relocate without meaningful financial incentives and lifestyle support. Traditional relocation packages that once included temporary housing or modest rental stipends are no longer enough. To make relocation financially viable, companies may need to explore enhanced down payment assistance, cost-of-living offsets, shared-equity programs, or Mortgage Interest Differential Allowance (MIDA), a benefit that helps bridge the gap when employees face higher mortgage interest rates in their new location. Beyond dollars and cents, relocating millennial employees often means supporting childcare access, quality school systems and career opportunities for spouses: Elements that can make or break a decision.

Gen Z: Eager, tech-savvy and ready

Meanwhile, Gen Z, those born between 1997 and 2012, are just stepping into the homeownership market. Despite formidable obstacles like high interest rates and limited inventory, this generation shows remarkable ambition and speed in pursuing homeownership. For Gen Z, buying a home represents not just a milestone but a safeguard against financial instability, especially in a rental market that continues to push affordability boundaries.

Gen Z brings a digital-first mindset to every interaction. They’ve grown up with smartphones, streaming and instant answers, and they expect real estate transactions to reflect that same level of convenience and transparency. A strong online presence is no longer optional, it’s essential. Listings must feature immersive virtual tours, professional-grade photography and clear floor plans. Communication should be mobile-first, fast and informative. Tools like e-signatures, online portals and virtual closings are now the standard.

Their buying journey often begins on social platforms like TikTok, Instagram and YouTube, where influencers shape their expectations about financing, home design, and the buying process. Real estate professionals who ignore these channels risk being invisible to this audience. Instead, success will come to those who embrace social media, provide educational content, and connect authentically.

In terms of home preferences, Gen Z favors modern, flexible and sustainable spaces. They want sleek designs with smart-home features and energy-efficient systems. Homes must be broadband-connected and ready to accommodate remote work and streaming. Despite budget constraints, these buyers aren’t willing to compromise on function, tech, or efficiency. Because of these modern homes, this may actually benefit corporations and prevent headaches down the line when it comes time to re-sell. Today's buyers are actively seeking less maintenance and features with broad market appeal.

Mobility professionals must keep pace with these expectations, too. Relocation support must be as digital and frictionless as the home search process itself. Gen Z employees will expect real-time updates, mobile access and transparent tracking. But technology alone won’t solve every challenge. With Gen Zs strong desire to own, high-cost markets can present a significant hurdle. Employers may need to rethink their approach by offering more robust purchase support.

The rise of the hybrid neighborhood

Beyond individual preferences, these two generations are collectively reshaping the entire real estate landscape. The surge in demand for suburban homes is colliding with restrictive zoning laws, prompting many cities and towns to consider more flexible development strategies, such as permitting duplexes, triplexes and accessory dwelling units. Millennials, especially those with young families, want more space, but they also want walkability, transit access and amenities. This is driving the rise of suburban developments that blend residential living with urban conveniences.

Innovation and alternative ownership models

Looking ahead, Gen Z will push the boundaries even further. With their digital fluency, they’re poised to embrace innovations like AI-powered home searches, blockchain-secured transactions and online-only brokerages. They’re also open to creative ownership models, from co-buying with friends to fractional real estate investment. This will challenge real estate professionals to stay informed, adaptable and fluent in new financing models and transaction structures.

Mobility strategies for a new era

For corporate mobility professionals, the message is clear: The old playbook needs a rewrite. A modern relocation strategy must be flexible and consultative, able to support a millennial couple looking for a family-friendly home in the suburbs or a Gen Z employee seeking a modern condo in a tech-forward city. Housing policies must be tailored to the realities of each market, from high-cost metros like Vancouver or Boston to up-and-coming hubs in the Sun Belt or Midwest. Flexibility is a competitive necessity in the battle for talent.

A call to adapt

Millennials and Gen Z aren’t just buying homes; they’re reshaping how homes are marketed, financed and supported. They expect sustainability as the default, not a luxury. They demand technology that simplifies, not complicates. And they want housing that aligns with their evolving lives, whether that means remote work, multigenerational living, or creative co-ownership.

Success for real estate professionals will hinge on their ability to listen deeply, act swiftly, and offer true expertise in a rapidly shifting market. And for mobility leaders, the challenge and the opportunity is to design programs that are not only proactive but resilient.

2025 States News Service