Younger home buyers turn to social media, AI and each other
Since 2020, the annual report has followed the evolving attitudes and behavior of home buyers aged 18 to 44. 2025 edition Draw on a study among 1,000 respondents in Gen Z (age 18 to 24), younger millennials (25 to 34) and older millennials (35 to 44).
The sample was in balance with gender, race and income to reflect the diversity of the contemporary housing market.
CHOPLINGS FOR AFTERNATION Stimulate Innovation
Almost 69% of the respondents mention affordability and high costs of living as primary obstacles to buying a house, with many who turn to alternative strategies.
These include co-purchasing with friends or family (21%), investing in fixer-upters (42%) or renting “house hacking”-renting a part of their house to generate income (19%).
In particular, Gen Z shows a greater willingness to pursue non -traditional paths. According to the report, Gen Z embraces alternative strategies more enthusiastically than their millennial counterparts, with a much higher chance of considering co-buying (32% versus 18% for millennials).
Gen Z Respondents are also more inclined to rent out parts of their houses (23% versus 17%) and a little more chance of moving to cheaper areas (41% versus 38%). “
“These trends emphasize how high costs of living and challenges for the affordability of homes forcing NextGen buyers to become creative, to go from traditional solo-hombuying to cooperation approaches and income-generating real estate strategies,” the report explained.
“This shift reflects both necessity and a pragmatic adaptation to current market conditions, where younger buyers find innovative ways to reach a homeowner despite considerable financial barriers.”
Trust in traditional institutions crumbling
Perhaps the most sobering conclusion of the report is the erosion of trust in financial professionals and institutions. Only 40% of the respondents said they trust banks – a sharp decrease of 61.5% in 2024. Trust in loan officials has been deposited even further, to 19.5%.
The roots of this distrust are complex. Millennials and Gen Z grew up during the Financial Crisis of 2008 and the COVID-19 Pandemie, periods of persistent economic turbulence. Many have seen the consequences of systemic failure and inequality, explained the report.
Only 20% of the respondents now trust the loan officials to guide them through mortgage decisions, while only 33% believe that brokers provide reliable advice.
Instead, these buyers increasingly trust peer communities, social media and artificial intelligence (AI) -controlled support tools.
Digital first generation turns to AI
With 35% of all respondents, including 43% of Gen Z-with the help of tools such as Chatgpt for information about home copies, AI becomes a crucial part of the decision-making process.
AI offers a more accessible, personalized experience compared to traditional sources. The report suggests that this technology “provides information and targeted, digestible guidelines that simplifies complex financial decisions.”
YouTube has also emerged as the leading educational tool, used by 66%of the respondents, followed by online webinars (42%) and podcasts (35%). Social media is now a standard part of the research phase used by 40% of Gen Z and 30% of the millennials.
Financial stress, still trust factors
Although financial stress is somewhat reduced-with 26% of the respondents who say that they feel ‘very stressed’, compared to 33% last year, more than two-thirds still a level of financial tension. The top reported stressors are high costs of living (63%) and unexpected costs (42%).
Financial trust remains a matter – especially for Gen Z – with only 43% confident in their financial knowledge. Trust is lower in women (38%) compared to men (47%).
More than half (53%) of all respondents said they never received personal financial education at school. Another 29% said it was optional or limited to a short lesson.
Who should you deal with?
Brokers remain the first contact point for many millennial buyers (43%).
But Gen Z would rather turn to financial advisers (36%) – a remarkable shift of millennials (25%). Hypotheek brokers are the least likely source for a first contact from both group.
The report concludes that housing professionals have both a challenge and a chance.
“The rebuilding of trust requires unprecedented levels of transparency, personalized communication and dedication to the financial well -being of NextGen buyers,” said it. “The Path Forward requires more than marketing – it requires a fundamental recasting of professional practices to meet the expectations of a generation that appreciates authenticity, accessibility and real financial empowerment.”
