When it comes to housing, Generation Z has high expectations. They are twice as likely to have purchased or want to purchase a home before the age of 25 than previous generations. 87% of Gen Z respondents to a 2020 survey by Gen Z Planet, said they wanted to own a home in the future. Furthermore, 30% of Gen Z buyers went directly from living under their parents’ roofs to owning their own homes. This is according to the most recent Home Buyers and Sellers Generational Trends Report (NAR). So we can definitely see that these generations are on the rise.
Why Are Gen Z moving the needle on the Housing Market
The most obvious reason why they are purchasing homes is the economic recovery. And as the economy recovers, they can focus more on growing a family. According to a recent survey, the majority of people (34%) who said they were buying a home for the purpose of starting or expanding their family. In fact, 63.6% of Generation Z intends to start a family. Along with establishing a family is creating a stable home. Among Gen Z, 20.8% are to purchase a home out of a desire for stability in their home life.
Also, as rents increase, buying becomes more appealing. It’s all about location, as the saying goes in real estate. As stated by the U.S. Census American Community Survey, the median rent has increased by almost 40% since 2010. Because they no longer want to rent, it makes sense why that motivates 18.1% of Gen Zers to buy a home.
Where Are They Moving?
A recent Lending Tree survey found that Gen Z buyers are concentrating on more affordable neighborhoods. This is to increase their purchasing power and counteract the difficulties associated with current mortgage rates. Although many Gen Z buyers value affordability, they still desire the convenience and excitement of city life.
The Bottom Line
The number of Gen Z homeowners among them will almost certainly increase in the years to come. It’s crucial to work with a local expert if you’re a member of Gen Z and are just beginning your home-buying journey. You will be aware of the most reasonably priced areas to look in. They can also highlight the features and amenities offered by the area and how those fit with your goals.
What To Do:
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