Ryan Serhant: Daughter Must Navigate Gen Z’s Shifting Housing Market

Ryan Serhant, founder and CEO of SERHANT., recently shared insights on the evolving housing market for Generation Z. He emphasized that the traditional narrative of homeownership, where previous generations bought houses at affordable prices, has changed dramatically. Today’s young buyers are facing a challenging real estate landscape.

Shifting Trends in Homeownership

According to Serhant, many first-time buyers must adjust their expectations. He stated, “You have to understand that your baseline starts right now.” The economic climate has shifted, and the market will not return to previous conditions, especially those seen in 2021, 2015, or even 1991.

• The National Association of Realtors reports that the median age of first-time homebuyers has reached 40 years, the highest recorded.
• This increase is linked to limited housing inventory and prolonged saving periods.
• Centers for Disease Control and Prevention (CDC) data indicates that birth rates are rising among mothers aged 30 or older, impacting demographics.

Affordability Challenges

Serhant highlighted the burden of living costs: “You’re either paying rent or property taxes.” He acknowledged that while homeownership may bring long-term benefits, many young families find it tough to afford houses, raising children, and managing overall financial stability.

Interestingly, Serhant noted that first-time homebuyers currently represent a robust segment of the market. Many baby boomers buy houses for their children, which sheds light on the new dynamics within families. A study by Intuit Credit Karma revealed that 44% of Gen Z buyers expect financial help from their parents, compared to just 16% of millennials.

The Role of Family Support

In today’s housing market, it is common for younger individuals to occupy properties purchased by their parents. This trend contributes significantly to the increasing median age of homebuyers. Serhant explained, “I think more younger people are living in homes they own or homes that were bought for them than ever before.”

As a father, Serhant hopes his own daughter will understand these realities. Reflecting on his upbringing, he acknowledged that while his parents could have helped him buy a home, they chose not to intervene directly, allowing him to learn the value of hard work and financial independence. He stated, “I would not be where I am today if my parents hadn’t helped me.”

Ultimately, Serhant believes that the American dream should be redefined, focusing on happiness and achievement in various forms, rather than solely on homeownership.