Where Do Gen Z Want to Live? Diverse Neighborhoods Are Not a Major Concern

Living in a diverse neighborhood is not a major concern for Gen Z, a new study has revealed. The study was commissioned by real estate company Redfin and conducted by Qualifics. It was fielded to 2,995 multi-generational renters and homeowners across the United States and the results focus on those 669 respondents who said they were "definitely" or "probably" going to move home in the next year.

Gen Z on Homeownership

Overarchingly, it revealed that, for Gen Z, issues such as diversity were greatly overshadowed by concerns around space, affordability and family changes. More From Newsweek Vault: Should I Buy a House Now or Wait? How to Determine the Right Time to Get a Mortgage The desire for more space is a predominant concern among Gen Zers—41.4 percent of respondents cited this as a reason for moving home—compared to 19.8 percent of Boomers, 32.6 percent of Gen Xers and 33 percent of Millennials. Much of the focus on issues of space over social factors such as diversity can be explained by the working habits of Gen Z. Mark Beal, a Gen Z expert and professor at Rutgers University told Newsweek: "Unlike previous generations, Gen Z is the first generation that is purchasing their first or second home and prioritizing dedicated space for one or more home offices. This is a key consideration for purchasing a home as many members of Gen Z work remotely or have a hybrid work schedule which requires one or more dedicated home offices and advanced technology that delivers fast and reliable WiFi." More From Newsweek Vault: First-Time Homebuyer Guide The survey revealed that when asked about the major reasons why they would move, only 4.3 percent of Gen Z said they would move to "be in an area that is more ethnically/racially diverse." This compares to 12.1 percent of Millennials and 6.1 percent of Gen X who would move to be in a more diverse area.

Experts at Redfin told Newsweek that they understood many Gen Z were already living in areas of diversity, thereby offsetting the need to move for that reason. Moreover, only 8.5 percent of Gen Z said they would likely move in the next year to be in an area where their views aligned with the political majority. More From Newsweek Vault: The Hidden Costs of Homeownership Of the Gen Z respondents, 7.6 percent said they were likely to move due to being discriminated against in their area. The findings were explained by Gen Z expert Corey Seemiller: "First, unsurprisingly, the more prominent rationale for why Gen Zers would move in the next year, according to this study, center on economic issues such as home prices and cost of living. The situational factors related to today's economy, as well as life stage factors, underscore the strength of these particular findings. And, while other factors related to moving are likely important for Gen Z, it makes sense that these rise to the top." Looking at Gen Z and their attitudes to diversity more closely, Seemiller told Newsweek: "On a more sociological level, though, this is a generation that views diversity more holistically as "who we are" rather than "which identity groups we belong to." With that mindset, it is possible that they see a diversity among their current neighbors that supersedes solely demographic differences," added Seemiller. Kamala Harris has unveiled a range of initiatives to fix America's housing market should she become president. It is hoped that certain plans such as up to $25,000 in downpayment support for first-time buyers will get Gen Z voters on board. Trump has called this a "big mistake" that would lead to a shortage of housing and price hikes. He has promised to crack down on illegal immigration to free up the housing supply. Both the Republicans and Democrats agree that surplus federal land could be sold to help the strain on affordable housing. Over a quarter of Gen Z respondents (25.8 percent) said they would move for an overall lower cost of living and 31.5 percent would move for lower home prices. However, safety was the trade-off as 23.7 percent of the Gen Zers said they would be willing to live in a less safe area in return for the right home price. Redfin senior economist Elijah de la Campa explained this: "Younger generations have come of age during a housing supply crunch, where prices are at all-time highs. Couple that with them earning less—relative to older generations—and you can see why they are willing to make more serious sacrifices to find a home they can afford."