Generation Z is the youngest group of potential home buyers in Canada, and the youngest generation of REALTORS®. There are now more than 6.7 million Canadians in this cohort, defined as those born between 1997 and 2012, and are poised to outnumber millennials and baby boomers in the next decade or two. This generation of young people represents a market that any savvy REALTOR® will want to access – but what strategies will REALTORS® need to use to appeal to the next generation of prospective buyers? We spoke to Gen Z REALTORS® to get their opinion on how best to work with their peers.
According to Statistics Canada, like millennials, Gen Zers are more educated and diverse than previous generations, are more exposed to cultural and gender diversity and have grown up in an interconnected technological world that has made an impact on their values and lifestyles.
Utilizing social media and new technologies
Gen Zers are tech-savvy—most probably don’t remember a time without smartphones, let alone the internet—so, one of the best ways to reach these digital naturals is through social media. Miguel Freitas is a REALTOR® and salesperson with Keller Williams Lifestyles Realty Inc., in London, Ontario, who was born in 1997, the first year of the Gen Z cohort. He knows firsthand that using social media to communicate to Gen Z buyers and sellers is a must, but the right platform matters, he says.
“TikTok for me is a huge distraction,” he says. “Business comes primarily from Facebook and Instagram. I’ve done some YouTube as well, which is more for educational video for other REALTORS® because I would like to be a coach one day,” he said.
Freitas seeks to make his social content personable and fun–like including his dog in property listing posts, for instance–while also striving to come across as serious about his business.
Gabriel Wahl, another Gen Z salesperson and REALTOR® born in 1997 who is with Royal LePage Your Community Realty, covering the Ontario markets of Markham, Vaughan and Toronto, says social media has been especially effective for building his brand as a REALTOR®, rather than pushing actual listings.
“I see social media as a way to promote … your expertise, knowledge, relatability, growing your sphere of influence with people that are somewhat connected to you,” he says. This method can lead to conversations about real estate, in which he can educate and further the sales process, he adds.
For Paulina Rizk, a salesperson and REALTOR® with Hazelton Real Estate Inc. in Toronto, it’s important to understand your clients’ preferences when it comes to technology and communication.
“When interacting with potential Gen Z buyers or sellers in the real estate industry, it’s crucial to tailor your approach to their preferences and behaviours,” says Rizk. “Gen Z is highly tech-savvy, so dedicate significant time to digital platforms.”
Rizk and Dalia Zini , also of Hazelton Real Estate Inc., see a “transformative shift” in the business as new technologies such as virtual reality revolutionize the way homes are sold. Artificial intelligence (AI) and generative AI can also be a game changer for REALTORS®. Generative AI platforms, such as ChatGPT, can be a productivity tool for busy REALTORS®, helping with tasks like customer support, property descriptions, market data, email marketing and virtual tours.
Free vs. Enterprise AI tools: It’s important to remember that when you use the free version of tools like ChatGPT, they learn from the information that people feed in. Always be cautious of entering sensitive data, such as proprietary or client information, into free versions of AI tools. When you use paid enterprise versions of AI tools, you have more control over data security.
While technology plays a role in Gen Z’s behaviour and decision-making, nothing beats an ‘old fashioned’ in person home tour, explains Zini.
Gen Zs are looking towards the future
Like the generations that came before them, Gen Zers are keen to jump on the property ladder. A recent Mustel Group and Sotheby’s International Realty Canada study found 37% of urban Canadian Gen Z adults expect to purchase their first home within the next five years. Of those surveyed, a whopping 83% see homeownership playing a major role in their ability to achieve a financially stable retirement, and 71% say they believe a home purchase will perform the same or better than other financial investments.
“Buying a home is a crucial decision, often the biggest investment people make,” Rizk says.
Because Gen Zers are young, they’re most likely looking for their first home, so providing education and support is important. But remember that many are highly educated. Gen Z clients are independent learners, says Arisza Hunt, a salesperson and REALTOR® with Royal LePage Atlantic in Halifax, Nova Scotia. They take the time to educate themselves and chances are they already know the market stats that REALTORS® will prepare for them.
Because Gen Zers are likely first-time buyers, helping them with aspects that go beyond finding the right property can be particularly helpful. Something Wahl likes to do is join clients at a meeting with a mortgage broker that breaks down the costs and gives them a saving plan for how they can meet their future goals.
“I just bought my first home last summer, so it is easier for me to connect with [Gen Zers] and go in-depth when explaining the process to them. A lot of my first-time buyer clients are people my age who I grew up with, so working with first-time buyers is very near and dear in my heart.”
