Gen Z would rather move than overspend for a home
Nearly two-thirds of young buyers said they would relocate to another city or state to afford a home, a new survey found. That opens the door to broader searches built around monthly costs, lifestyle and must-have features.
Gen Z buyers are willing to cross neighborhood, city and even state lines to find the right home. What they’re less willing to do is stretch their monthly budget, according to a new study by NewHomeSource.
Nearly two-thirds of Gen Z respondents said they would relocate to another city or state to afford a home, while only 19% would increase their housing budget, the survey found.
That flexibility could make a broader market search more valuable for younger customers. Instead of beginning with a ZIP code, the conversation may need to start with the monthly payment, must-have features and the type of lifestyle they want.
“Gen Z is showing a real shift in how they think about homeownership,” said Ali Wolf, chief economist at NewHomeSource and Zonda. “Rather than stretching financially to buy as soon as possible, they’re setting clear financial boundaries and expanding their search.”
Thirty-nine percent of respondents said they plan to buy within the next five years. Their most popular compromises all involved location:
- 35% would move to a less expensive area within their state.
- 33% would explore another neighborhood.
- 28% would relocate to a more affordable state.
- Most would not add more than $300 to their monthly housing budget, with many setting the limit closer to $150.
The findings suggest that side-by-side comparisons of communities may resonate more than simply showing buyers smaller homes within their original search area. Total monthly costs, commute options, job opportunities and proximity to family could all help determine how far a customer is genuinely willing to go.
Space still matters
Gen Z’s willingness to move does not mean the generation is ready to give up its wish list. Respondents were more open to relocating than accepting a smaller home, lower-quality finishes or fewer community amenities.
Large backyards and garages topped their preferences, each selected by 32% of respondents. Pools followed at 28%, with large kitchens at 27%. More than half — 53% — described the suburbs as their ideal place to live, particularly communities that combine additional space with walkable, urban-style amenities.
“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.”
For younger buyers, expanding the search may not feel like settling. It may be the strategy that allows them to protect their budget without giving up the home they actually want.
© 2026 Florida Realtors®