The housing market in 2025 is witnessing a remarkable transformation, driven by young first-time home buyers who are approaching property ownership with values and expectations distinct from previous generations. Far from being labelled the “renter generation,” Gen Z is emerging as a confident cohort willing to invest in homes earlier in life, but on their own terms.
Gen Z vs Millennials: How Priorities Differ
The debate around Gen Z vs Millennials in real estate highlights a clear generational shift. Millennials often viewed homeownership as a long-term aspiration, delayed due to career uncertainties, student debt, and global economic downturns. In contrast, Gen Z buyers—those born after 1996—are showing a willingness to prioritise real estate sooner, even if it requires smaller spaces or collaborative ownership. While Millennials embraced rentals for flexibility, Gen Z is redefining permanence by blending ownership with adaptability, such as investing in under-construction homes or exploring co-buying models with peers.
Gen Z Buying Behaviour and Aspirations
A defining aspect of Gen Z buying behaviour is the balance between aspiration and pragmatism. They view real estate not merely as a financial asset but as an expression of identity. Customisation, design, and location flexibility rank as highly as appreciation potential. Unlike earlier generations who focused largely on capital gains, Gen Z home buying decisions often weigh lifestyle fit, sustainability features, and digital convenience. Smart homes, IoT-enabled security, and green credentials are fast becoming non-negotiables.
The Rise of Under-Construction Homes
Data suggests that 73% of Gen Z buyers in India prefer under-construction properties. The reasons are clear: lower entry costs, phased payment structures, and opportunities to personalise the final space. In fast-growing urban centres such as Hyderabad, Bengaluru, and Pune, young buyers see these properties as future-oriented investments that align with infrastructure development timelines. This patient yet aspirational approach stands in contrast to the instant-gratification stereotype often applied to this generation.
Affordability and Creative Financing
Despite their enthusiasm, affordability remains a key challenge. Gen Z is highly conscious of debt and risk, making careful calculations about what they can sustain. To bridge gaps, innovative strategies such as co-buying are gaining traction. In some cases, friends or extended families are pooling resources to jointly purchase homes, creating hybrid models of ownership that spread costs while offering equity growth. This willingness to think outside conventional mortgage structures is reshaping the market and prompting developers and banks to design tailored solutions.
Technology and Sustainability as Drivers
Technology integration is central to the choices of Gen Z buyers. Virtual property tours, online transactions, and digital mortgage processes are not luxuries but expectations. Equally, sustainability weighs heavily on their decisions. Demand for solar panels, rainwater harvesting, energy-efficient design, and eco-friendly materials reflects not just environmental awareness but a desire to future-proof homes against rising utility costs and regulatory changes.
Global Trends, Local Reflections
Globally, Gen Z is making similar moves. In the United States, 67% of potential Gen Z homebuyers plan to buy in 2025, but many walk away from deals that don’t meet their financial comfort zones. In India, however, the narrative carries an added layer—rapid urbanisation, infrastructure expansion, and aspirational living standards are fuelling purchases in tier-1 and tier-2 cities. Developers catering to this demographic are increasingly focusing on smaller ticket sizes, community amenities, and digital-first engagement.
The Decade Ahead
By 2030, Millennials and Gen Z together are projected to make up around 60% of India’s homebuyer base. This demographic power will continue to reshape how homes are designed, financed, and marketed. Their influence ensures that the future of housing is not only about four walls but about integrated living: spaces that combine connectivity, sustainability, and personal expression.
The evolution of housing preferences among Gen Z is a reminder that the meaning of ownership is not static. From prioritising young first-time home buyers to recognising the nuances of Gen Z buying behaviour, the market is adapting rapidly. Whether through under-construction properties, tech-enabled experiences, or collaborative financing models, Gen Z buyers are ensuring that Gen Z home buying is not just about acquiring property—it is about shaping the very future of how homes are defined and lived in.
