Eight in ten Gen Z and Millennial buyers say homeownership is essential to making it in America. Only 1 in 8 trust that a housing professional won’t take advantage of them when they’re ready to buy.
The 2026 NextGen Homebuyer Report, published by FirstHome IQ and National MI, surveyed 1,000 consumers ages 18 to 44 and found something the industry needs to hear.
While 63% of NextGen buyers believe agents are knowledgeable, only 37% believe those same agents are working in their interest.
Here’s what the data says and what agents can do about it.
The Trust Gap Agents Are Dealing With
The distrust runs deeper than most agents realize, and it splits into two distinct categories.
The first is confidence in professionals: do buyers believe agents are competent and well-intentioned?
The second is confidence in the system: do buyers believe the incentive structures of the industry actually protect them?
NextGen buyers are more willing to trust the professional than the system, but there are limits to that trust. Here’s what the data shows:
- 63% believe housing professionals have the knowledge to provide good advice
- But only 37% believe those same professionals put clients’ interests ahead of their own
- And only 12% aren’t worried about being taken advantage of by a housing professional
The breach between those first two numbers is where agents have work to do.
Buyers are walking in skeptical of your motives (more than your competence), and that skepticism doesn’t always fade with the first meeting.
When it comes to the system itself, the concerns are specific:
- 60% worry about being taken advantage of
- 58% fear being pressured into decisions they don’t fully understand
- 57% are concerned about not being told about better options
What makes this harder is that systemic distrust doesn’t improve with experience. Buyers who’ve already purchased a home carry these concerns at nearly the same rate as those who haven’t.
Six years of data and 9,000+ respondents back it up: this is a cultural skepticism baked into how this generation sees the industry.
What Happens When Buyers Don’t Trust the Process
When buyers don’t trust the system, they don’t call an agent. They try to figure it out on their own. And much of the time, the volume of information buries them, and they stop engaging altogether. Or they look to AI to streamline the process.
The report measured this with a validated overload and avoidance scale, and the numbers are significant:
- 63% of NextGen buyers feel overwhelmed by the volume of homebuying information
- 42% put off talking to a professional because of that overwhelm
- 37% avoid thinking about homebuying entirely
Millennials are pulling back harder than Gen Z across both avoidance behaviors:
- 44% of Millennials avoid thinking about homebuying vs. 34% of Gen Z
- 46% of Millennials put off talking to a professional vs. 37% of Gen Z
According to the report, these buyers check out because the process feels paralyzing, and years of housing market challenges have made that worse for Millennials in particular.
What that means is a portion of your potential client base is sitting on the sidelines right now, and the barrier keeping them there has less to do with affordability or inventory than with how they feel about the process itself.
As they see it, the process, and the system that created it, are designed to benefit real estate agents. Not consumers.
Experience Changes Everything (Which Means the First Interaction Does Too)
The data has a bright spot, and it’s one agents can actually do something with.
Trust nearly doubles after a buyer goes through the process and works with a skilled and trustworthy professional. Someone who applies their knowledge and skill to get the best possible outcome for their clients.
Here’s what the data shows when you compare homeowners to non-owners:
- Only 55% of non-owners believe a professional is knowledgeable enough; that jumps to 74% among owners
- Only 27% of non-owners believe a professional will put their interests first; that jumps to 49% among owners
- Only 25% of non-owners believe a professional would recommend what’s best even if they earned less; that jumps to 48% among owners
That kind of movement comes directly from the experience of working with a good agent. The problem is non-owners have to trust you enough to get started before they’ve had that experience.
Your online presence, your responsiveness, your reviews, and your visibility in the community are all doing work before a buyer ever picks up the phone.
That said, your behavior from that first contact all the way through the transaction determines whether you earn your client’s trust or reinforce the opposite.
Real estate agents are still the first call for 43% of buyers considering a purchase, ahead of financial advisors (35%) and loan officers (26%). You have the position.
The question is whether you’re using the time before that first call, and throughout the process, to earn it.
Where NextGen Buyers Are Researching
YouTube has been the top platform for homebuying education across six years of this research, and 2026 is no different. More than half of NextGen buyers (53%) would use it to research the homebuying process.
ChatGPT has moved into second place at 33%, with TikTok and Instagram tied at 28% and Reddit at 25%.
The generational split on where buyers go is worth understanding:
- 36% of Gen Z use TikTok for homebuying education vs. 22% of Millennials
- 33% of Gen Z use Instagram for homebuying research vs. 24% of Millennials
- Both generations converge on YouTube and real estate websites
About one-third of NextGen buyers will integrate AI into their homebuying journey alongside professionals and peer networks.
Here’s how they break down on trusting AI vs. humans with a personalized homebuying plan:
- 45% trust human professionals more
- 38% trust humans and AI about equally
- 12% trust AI more
- 6% would not trust either
Buyers arriving with AI research have done their homework, which means the first conversation can go deeper faster.
The buyers showing up with ChatGPT summaries and YouTube research are giving you a more informed starting point.
What to Do With This
NextGen buyers are already overwhelmed by the volume of what’s out there, and adding more information to the pile won’t help. Clearer, more direct communication designed around how this generation actually processes information is what gets through.
Here’s what that looks like:
- Lead with listening before you lead with listings or rates. Ask what feels unclear and what would make this feel manageable.
- Be proactively transparent about fees, commissions, and the reasoning behind every recommendation. Buyers who understand the system are more likely to trust the professionals working inside it.
- Make trust visible before the first conversation. Your website, your reviews, your responsiveness, and your community presence are all signaling alignment before a buyer ever contacts you.
Only 25% of non-owners believe a professional would recommend what’s best for them. After buying, that jumps to 48%. You’re the reason that number moves.
What are you doing to move it even higher?
