How will Gen Z change the housing market?

by | Apr 5, 2022

As members of Gen Z start to become young adults and enter the housing market, they come with a brand new set of ideas and expectations. Like previous generations, Gen Z views homeownership as an essential part of the American Dream and considers buying their own home to be a financial priority.

As the best-educated generation, Generation Z has been raised with instant access to information, so they want immediate answers to their questions. They are also more comfortable with technology than any previous generation, changing how loan origination and lead generation are done.

Gen Z members want immediate answers to their questions.

One of the defining characteristics of Gen Z is their demand for immediacy. They have only known a world where they can get answers to their questions at any time, so they expect businesses to be just as responsive. This applies to the housing market as well. Gen Z home buyers want to get answers to their questions quickly and easily without waiting for a response from their lender.

This is where chatbots can come in handy. Many lenders are now using chatbots to provide immediate answers to homebuyers’ questions. Gen Z renters in the early stage of researching homeownership can use a chatbot to get answers to their questions, such as “How much can I afford?” or “What are the more affordable areas in my city?”

In addition to providing immediate answers, chatbots can also help lenders keep track of leads and collect data. By automating the lead collection process, lenders can save time and resources while increasing their ROI.

Chatbots also allow Gen Zers, their millennial counterparts, and previous generations to apply online when buying homes. This is a massive shift from the way previous generations applied for mortgages, which was usually done in person or over the phone.

‘Apply Now’ buttons make it easy for Gen Zers, who are used to remote work, to start the loan application process without having to leave the comfort of their home.

Support automation with chatbot functionality.

Capacity is a support automation platform that helps mortgage providers automate the tedious and time-consuming tasks associated with loan origination. Lenders can use Capacity’s chatbot functionality to answer more than 90% of questions from homebuyers. This includes questions about student loan debt, mortgage rates, down payments, filling out a mortgage application, and factoring in personal savings.

An effective chatbot provides instant 24/7 customer support for borrowers and frees up employees to focus on more complex tasks, like lead generation.

Gen Z members want personalized lead generation.

Another trend that we see in Gen Z homeownership is the use of technology for lead generation. Gen Zers spend more than eight hours a day online. More than half (53%) of this generation bought something through a mobile device in the past six months.

This generation is more comfortable with online tools than any prior, so they are more likely to use the internet for their housing needs. This means that lenders and real estate professionals need to have an effective online presence to reach Gen Z homebuyers.

Many lenders use online tools, such as social media and search engine optimization to generate leads at scale. This is a fantastic way to reach out to Gen Zers, who value personalized customer experience when purchasing homes.

Capacity and lead generation.

Lenders and mortgage professionals utilize Capacity for lead capture and qualification.

Most mortgage companies are still using outdated methods for lead generation, limiting their potential growth. 

Capacity uses AI-driven conversations to route new leads directly to your sales team so that you can close more loans in less time. Capacity’s goal is to help lenders reach Gen Z customers and provide them with the best possible customer experience.

How best to help Gen Z with homeownership.

Homeownership is a top priority for Gen Z. It’s becoming highly attainable for this generation due to high disposable incomes. The key to supporting homeownership amongst Generation Z is to provide them with the right resources and information, at the right time.

Capacity’s chatbot functionality and lead generation tools are the perfect way to provide Gen Zers with the answers to their questions exactly when they need them.If you’re a mortgage provider looking for ways to better support Gen Z homebuyers, Capacity is here to help. Our goal is to help lenders reach Gen Z customers and provide them with the best possible customer experience.