Zillennials are younger millennials and older Generation Z consumers born between 1991 and 1999. They are a consumer segment with growing purchasing power that merchants should view as distinct from traditional generational groupings.
PYMNTS Intelligence’s latest research takes a close look at two of the largest purchases most consumers make: vehicles and homes. While financial constraints loom large across age groups, zillennials exhibit some unique trends. Notably, they are more likely than other consumers to say that saving for the down payment is their biggest obstacle for these major purchases.
Other factors weigh heavily into the equation for zillennials too. For transportation, zillennials put a premium on flexibility, with on-demand availability ranking as the single most important factor. When it comes to optimism about buying a home in the future, zillennials trail Gen Z.
These are just some of the findings detailed in “Generation Zillennial: Zillennials’ Transportation Choices May Have Future Down Payments in Mind,” a PYMNTS Intelligence special report. This edition examines generational trends in vehicle and home ownership. It draws on insights from a survey of 2,779 U.S. consumers conducted from Dec. 5, 2024, to Dec. 22, 2024.
The Car Question
Zillennials are less likely than older consumers to own motor vehicles, favoring leasing, public transit and ridesharing services as alternatives.
Across age groups, most U.S. consumers own a motor vehicle. However, younger individuals are the least likely to do so — and the most likely to prefer more flexible alternatives.
Fifty-one percent of Gen Z and 57% of zillennials use a motor vehicle they own as their primary transportation method. This climbs steadily with age, reaching 76% among baby boomers. While financial constraints are more likely to be a barrier for younger consumers, these are far from the only important factors at play.
Meanwhile, younger consumers are the most likely to choose flexible transit alternatives. Aside from borrowing a friend or family member’s vehicle, leasing is the most popular option. Twelve percent of zillennials use a leased vehicle as their main form of transportation, as do 11% of Gen Z and millennials. Meanwhile, less than 10% of older consumers say the same. Zillennials and Gen Z are also the most likely to rely on public transportation and ridesharing services.
In deciding which forms of transportation to use, zillennials emphasize three issues more than any other generation. The first is on-demand availability, cited by 59% of zillennials as highly important. Parking availability and environmental impact follow, at 50% and 37%, respectively. That said, cost is the most pressing consideration. Among zillennials, 76% cite at least one cost-related issue — initial purchase costs, monthly payments or maintenance — as highly important to whether they own a car or use alternative transportation options.
Barriers to Entry
Zillennials are more likely than any other generation to cite the down payment as a barrier to vehicle and home ownership.
Vehicles and homes are among the largest purchases most consumers will ever make. Regardless of age, would-be buyers face a wide range of financial and other obstacles. Overall, 68% of consumers cite at least one significant barrier to vehicle purchases, and 67% say the same regarding homes. However, younger individuals are substantially more likely to say they face obstacles in both cases.
Looking more closely at barriers to vehicle purchases, two key themes stand out. First, the down payment is more often an obstacle for Gen Z and zillennial consumers than for their older peers. Thirteen percent of Gen Z and 14% of zillennials name this as the top issue, substantially more than millennials, at 9.5%. Second, younger consumers are much less likely than older ones to cite avoiding long-term debt as their biggest obstacle. Just 14% of Gen Z, zillennials and millennials cite this as their biggest barrier, versus 21% of Generation X and 20% of baby boomers.
Turning to real estate, high prices rank as the biggest issue regardless of generation. However, Gen Z and zillennials name this their top barrier the most frequently, at 34% and 24%, respectively. We also see that the lack of funds for a down payment is more likely to be the top difficulty for Gen Z and zillennials than older generations.
The Homeownership Dream
Despite high housing costs, nearly 7 in 10 zillennials plan to eventually purchase a home.
As housing prices rise, buying a home can seem increasingly elusive or even impossible for many consumers. However, zillennials are more optimistic than older consumers. Among zillennials who are not already homeowners, 69% say that they plan to buy a home at some point in the future. This drops steadily for older age groups, from 61% of millennials to just 21% of baby boomers. That said, Gen Z consumers are the rosiest in their outlook, at 74%.
Turning to current homeowners, zillennials break away from Gen Z and look more like older consumers in two ways. First, 52% of zillennials purchased their home with a spouse or partner, relatively close to the rates seen among millennials, at 55%, and Gen X, at 63%. This drops to just 34% for Gen Z. Second, zillennials, at 11%, were much less likely than Gen Z, at 28%, to make the purchase with a family member or friend. Among older age groups, this share ranges from 3.9% to 8.7%.
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Methodology
“Generation Zillennial: Zillennials’ Transportation Choices May Have Future Down Payments in Mind,” a PYMNTS Intelligence exclusive report, is based on a survey of 2,779 U.S. consumers conducted from Dec. 5, 2024, to Dec. 22, 2024. The edition examines differences in vehicle and home ownership trends across generations. Population weights are utilized to ensure analysis remains representative of the U.S. adult population.