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How Real Estate Investors Can Leverage Gen Z’s Homebuying Surge in Key Markets
The latest report from CoreLogic highlights a growing trend in the housing market: Generation Z is stepping into homeownership at an increasing rate. According to CoreLogic’s analysis, Gen Z accounted for 13% of total mortgage applications in 2024, a notable rise from the previous year. The top 10 cities where this demographic is actively purchasing homes include Salt Lake City, Oklahoma City, Indianapolis, Louisville, Cincinnati, St. Louis, Kansas City, Richmond, Columbus, and Minneapolis (CoreLogic).
For real estate investors engaged in fix-and-flip projects, this data highlights a promising market trend with strong potential. Understanding the preferences and needs of Gen Z buyers can help investors tailor their strategies to maximize returns. Here’s how fix-and-flip investors should react to this trend:
1. Target Markets with High Gen Z Homebuying Activity
A simple approach is for investors to consider shifting their focus to the cities highlighted in the CoreLogic report. These markets indicate strong demand from younger buyers, making them prime locations for fix-and-flip investments. By purchasing distressed or undervalued properties in these areas, investors can renovate and sell homes tailored to Gen Z’s preferences.
2. Modern, Affordable, and Move-in-Ready Homes Are Key
Gen Z buyers are highly cost-conscious but also value modern, tech-friendly homes. Investors should prioritize renovations that enhance affordability while incorporating smart home features, energy efficiency, and modern aesthetics. Open-concept layouts, updated kitchens and bathrooms, and sustainable materials can make a property more attractive to this demographic.
3. Leverage Digital Marketing and Social Media
Gen Z is the first generation of digital natives, relying heavily on online platforms for research and decision-making. When it comes to marketing the property, investors will want to make sure they are leveraging all forms of social media, virtual tours, and digital marketing strategies. High-quality visuals, Instagram-worthy staging, and engaging video content can significantly boost a property’s visibility.
4. Focus on Walkability and Amenities
Gen Z buyers prioritize convenience and lifestyle-oriented amenities. Proximity to public transportation, work hubs, entertainment, and green spaces can enhance a property’s desirability. Investors should factor in these elements when selecting properties to renovate and resell.
Conclusion
The rising homeownership rate among Gen Z signals a shift in demand that real estate investors should capitalize on. By targeting the right markets, modernizing homes with features that appeal to younger buyers, and leveraging digital marketing, fix-and-flip investors can stay ahead of the curve and maximize their returns. With Gen Z’s share of the market expected to grow, now is the time to adapt and align investment strategies with the needs of this emerging generation.
For more insights on real estate market trends, check out the full CoreLogic report here.
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