How Gen Z Will Shape the 2026 Homebuying Market

Whether you are a Gen Z-er looking to enter the housing market or are curious about the effect younger buyers will have, there is a lot that can change as a new generation starts buying homes.

Members of Generation Z, or Gen Z, were born from 1997 to 2012 and are recognized for their awareness of issues ranging from social to political and environmental. They are also characterized by their ability to adapt to new and emerging technologies. All this can be seen in the ways they navigate the market and homes they are looking to buy.

For any Gen Z-ers looking to start the homebuying journey, you can begin by getting a pre-approval today.

Gen Z has been utilizing technology and digital platforms for their homebuying journeys.

From virtual tours to digital loan applications, Gen Z can start and finalize the whole homebuying journey seamlessly online. “Technology is now woven into almost every part of lending. Income checks. Asset verification. Account pulls. Even the way we monitor clients after they close. Things that used to take hours now take minutes,” Rate Senior Vice President of Mortgage Lending Eric Hamilton said.

Trends have also shown Gen Z using artificial intelligence chat-bots for assistance during several stages of the homebuying process. Between learning more about affordable areas and comparing home prices, AI is one of the many ways Gen Z is using technology during their journey to homeownership.

When starting to buy a home, Gen Z-ers tend to look for homes that are tech-integrated, sustainable and affordable.

Raised with technology, it is no surprise that Gen Z-ers look for homes that have technologically integrated systems. These can include smart thermostats, smartphone-controlled home security and access to high-speed internet.

Sustainability Gen Z-ers look for is in materials used to build the home or ways to cut energy consumption. Recycled, reused or locally sourced building materials could attract a Gen Z sense of environmental awareness. As for sustainability in energy consumption, water-saving fixtures, solar panels and energy-efficient appliances are key to Gen Z requirements.

Of course, a big hurdle Gen Z-ers face when looking for a home is affordability. As median home prices increase, Gen Z is favoring markets like the Midwest and South, where median home prices can be lower than the national average.

According to the National Association of REALTORS®, or NAR, Gen Z-ers tend to purchase older homes more than other buyers.

Given what Gen Z is looking for in the housing market, new home developments in 2026 and beyond may see developers lean into the wants and needs of these future homebuyers. Developers favoring Gen Z may lead to more homes on the market being equipped with technological upgrades and energy-efficient options.

With Gen Z focusing on digitally shopping for a buying a home, we may also start seeing more of the homebuying process shift online.

According to a report from the National Association of REALTORS®, the median age of first-time homebuyers rose in 2025 to 40 years old. The NAR also reported that only 3% of homebuyers belonged to Generation Z.

It is fair to assume that as Gen Z-ers get closer to the median age of first-time homebuyers in 2026, we should see a greater number of Gen Z first-time buyers.

The NAR predicts mortgage rates will drop in 2026. If this is true, homeownership could become more affordable for Gen Z-ers or anyone looking to buy a home. Lower mortgage rates means you could end up paying less over the life of your loan.

For those who don’t want to wait to see if mortgage rates will drop, refinancing could help later if rates do come lower. Refinancing a mortgage you get or already have will match current rates. Waiting to refinance until rates drop could reduce your monthly payments.

Whether you are a Gen Z-er or part of a different generation, you can get started on your mortgage by applying for a mortgage pre-approval.

Pre-approvals will show you how much you qualify for as well as the terms of your loan. With this information, you can start planning your monthly budgets and focus on looking at homes within your price range. Pre-approvals can last for three to six months, giving you plenty of time to find your dream home.

You can start the mortgage process and begin your pre-approval application today!

_{Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.}

_{Information provided is for educational purposes only. It should not be construed as financial or legal advice or instruction. Rate does not guarantee or assume liability for the accuracy, completeness or timelines of the information. You should conduct additional research before making any mortgage related decisions.}