Key Details:
- The 2025 NextGen Homebuyer Report reveals that 59% of Gen Z and Millennial buyers believe homeownership is attainable, but only 19% think it’s a good time to buy.
- Trust in banks has dropped from 61.5% to 40%, while 43% of Gen Z now rely on AI tools like ChatGPT for homebuying information.
- YouTube is the top educational platform, used by 66% of homebuyers overall and 74% of Gen Z.
If you’re still using the same buyer consultation script you used five years ago, it’s time for an update.
The 2025 NextGen Homebuyer Report, published by FirstHome IQ in partnership with National MI, is packed with data from 1,000 Gen Z and Millennial respondents. Now in its fifth year, the report breaks down the evolving mindsets, challenges, and strategies of buyers aged 18 to 44.
And it makes one thing clear: Younger buyers still want to own homes. But they’re not going about it the same way their parents did.
Kristin Messerli, Executive Director of FirstHome IQ, explained:
“While 95% of respondents share a desire to achieve homeownership, confidence levels, affordability strategies, and trust in professionals reveal ongoing disparities that demand industry attention.”
Top 10 Insights from the NextGen Homebuyer Report
Here are 10 of the biggest takeaways from this year’s report and what they mean for real estate professionals in 2025.
1. AI and Social Media Are Now Essential Sources for Real Estate Info
Buyers aren’t just searching listings. They’re searching you. And they are doing that on TikTok, YouTube, and ChatGPT.
- 40% of Gen Z use social media to research homebuying (vs. 30% of Millennials)
- 35% of all respondents use AI tools like ChatGPT for homebuying questions
- Among Gen Z, that number jumps to 43%
If your content isn’t findable in the places they already spend time, you’re not part of their process.
Scott Harris, CEO of Experience.com, drove this point home during his BAM BBQ presentation, breaking down how today’s AI tools have changed the way you as a real estate professional are seen (or not) online.
He also provided the blueprint for showing up when people start looking for the top real estate agents in your area.
Learn more by downloading the free guide, “How Real Estate Professionals Can Win Online in Organic, Map, and AI Search.”
2. They Still Believe in the Dream, Just Not the Timing
Nearly 60% of NextGen buyers say homeownership is attainable, but 59% believe now is not a good time to buy.
- Only 19% said it’s currently a good time to purchase
- 68% of Gen Z say now is a bad time (compared to 57% of Millennials)
Hope is alive, but the hesitation is real. These buyers need clear, non-hype-driven guidance on when and how to move forward. And it’s got to be personalized. Folks can smell what Tom Toole calls “commission breath” a mile away.
And one-size-fits-all advice is, as my kids would say, “not the vibe.”
3. YouTube Is the #1 Education Platform for Homebuyers
Don’t hang all your hopes on that drip campaign. Today’s buyers are watching real estate explainers on YouTube before they ever reach out.
- 66% use YouTube to learn about buying a home
- 74% of Gen Z rely on YouTube, compared to 64% of Millennials
- Other popular sources: online courses (42%), podcasts (35%), and Reddit/forums (28%)
Video is no longer optional. It’s the foundation of financial literacy for this group.
4. Trust in Banks and Loan Officers Is Falling Fast
Trust in financial institutions has taken a major hit in just one year.
- Trust in banks dropped from 61.5% (2024) to 40% (2025)
- Only 19.5% of respondents trust loan officers
- Just 33% say they trust real estate agents to provide reliable guidance
Messerli noted:
“This loss of trust manifests in tangible ways. Only 20% of respondents trust loan officers to help them make smart mortgage decisions.”
Agents who lead with curiosity, transparency and education have a real chance to rebuild that trust, one conversation at a time.
5. Buyers Are Getting Creative to Afford Homes
With affordability top of mind, younger buyers are leaning into non-traditional paths to ownership.
Top strategies include:
- Buying a fixer-upper: 42%
- Co-buying with friends or family: 21%
- Renting out part of their home: 18.6%
- Moving to a lower-cost area: 47%
This is not a fringe segment. These are mainstream strategies now, especially among Gen Z buyers. It shows their determination to own a home, despite the challenges.
6. Gen Z Leads the Shift Toward Alternative Buying Models
Compared to Millennials, Gen Z is significantly more open to collaborative and income-generating solutions.
- 32% of Gen Z are considering co-buying (vs. 18% of Millennials)
- 23% of Gen Z would rent out part of their home (vs. 17% of Millennials)
- 41% would move to a lower-cost area (vs. 38% of Millennials)
They’re flexible, resourceful, and looking for agents who can help them do more with less.
What they may not realize is the potential downsides of using part of their property as a short-term rental (STR). That’s something you can bring to their attention, especially if they don’t know your city’s policies in regard to STRs.
7. Financial Stress Is Improving, But Still Widespread
Financial stress is down compared to last year, but it remains a constant undercurrent.
- 26% report being very stressed (down from 33% in 2024)
- 66% report some level of financial stress
Top concerns among Gen Z and Millennial buyers include the cost of living (63%) and unexpected expenses (42%).
If you’re not asking about budget stressors upfront, you may be missing the full picture. Because until you see and acknowledge your buyers’ biggest concerns, you won’t be speaking the same language.
8. Financial Confidence Is Low, Especially for Gen Z and Women
Even though Gen Z is more digitally savvy, they feel less confident in their financial knowledge.
- Only 31% of Gen Z feel confident in their personal finance knowledge (vs. 45% of Millennials)
- Just 38% of women feel confident in their homebuying knowledge (vs. 47% of men)
Buyers may not ask the “dumb” questions out loud. Make space for those conversations anyway.
9. Schools Are NOT Teaching This Stuff
Financial literacy gaps are holding buyers back.
- 53% received no personal finance education in school
- 29% said it was optional or only a short lesson
That’s 82% of respondents entering adulthood without foundational financial knowledge.
As Messerli put it,
“The 82% who receive minimal to no formal financial education highlights an urgent need for comprehensive financial literacy programs.”
That lack of financial literacy often translates into a lack of savings and a tendency to accumulate debt. Not knowing how to make compound interest work for you (rather than against you) has real consequences that can keep homeownership out of reach indefinitely.
- Nearly one-fifth (18%) of respondents said they have no emergency savings
- 23% of Millennials and 30% of Gen Z have less than $1,000 saved
- 27% of Millennials have between $1K and $5K saved, compared to 33% of Gen Z
- 15% of Millennials have between $5K and $10K saved, compared to 10% of Gen Z
- 18% of Millennials have more than $10K saved, compared to 10% of Gen Z
And when it comes to debt:
- 15% of respondents have over $20K in debt
- 23% owe between $5K and $20K
- 33% owe less than $5K
- And only 30% have zero debt
Real estate professionals have an opportunity to step in as educators and trusted resources. Put yourself in your buyers’ shoes and, if they’re open to it, share what has helped you get a handle on your own finances. That conversation may be the only thing standing between them and eventually becoming homeowners.
Even better: The education and resources you share with them are a gift they can pass on to their kids, paying dividends (literal and figurative) for years to come.
10. Agents Are Still the First Call, But Not for Everyone
When asked who they’d contact first for homebuying advice:
- 44% of Millennials said a Realtor
- 38% of Gen Z also chose a Realtor, but
- 36% of Gen Z said they’d call a financial advisor first
- Loan officers were last, at 12% for Gen Z
The role of the agent is evolving. It’s not just about access to homes anymore. It’s about access to clarity. That’s what it means to be a trusted advisor; you’re meant to clear the fog of misinformation and fill the knowledge gaps so they can make the best decisions for them.
And it’s not just about buying that first home. A trusted advisor becomes a valuable resource not only for that first home purchase but also for the preparation beforehand, for their years as first-time homeowners, and for whenever they decide to sell that home to prepare for the next stage of their life.
Bring clarity to every conversation. Every good decision you help them make is an investment in a lifelong relationship.
Key Takeaways for Real Estate Professionals
- Show up where they search. That means YouTube, social media, and AI tools.
- Speak their language. Simplify the process, offer options, and lead with transparency.
- Don’t assume they know. Create content that explains the basics without talking down.
Younger buyers still want to own homes. But they’re navigating the process with caution, stress, and a lot of internet tabs open. If you want to earn their trust and their business, meet them where they are and guide them like no one else will.
