What does it take for Gen Z to become homeowners?
October 18, 2023
Without a doubt, there are tremendous benefits to owning a home. From generational wealth to better educational and health outcomes, buying a home that you can move into and call your own has long been part of the American dream — with good reason.
As millennials and Boomers are tapping into the limited inventory nationwide, many would-be homeowners in Gen Z are starting to wonder, What it will take to find a space and place to purchase themselves?
According to a recent piece by Forbes, the real estate technology firm Hommati has reported that 97% of these young adults (those born between 1997 and 2012) want to become homeowners –— and most are saying even before they’re 35!
One encouraging bit of news is that Zillow recently reported that first-time home buyers now make up 50 percent of all home buyers, up from 45 percent last year, and significantly higher than the 37 percent recorded in 2021. With mortgage rates still hovering around 7 percent and almost three times higher than they were two years ago, affordability is still the greatest hurdle. A shrinking inventory is also part of the puzzle.
Yet according to the Zillow report, almost half of the first-time home buyers are millennials (at 49 percent), between the ages of 29 to 43. And Gen Z adults — between 18 and 28 years old — make up more than a quarter of all the first-time buyers, at 27 percent. They’re seeing their persistence pay off at trying to attain a piece of the American Dream, working even harder than their predecessors at the home-buying process than repeat buyers.
They’ve also been encouraged to “date the house, and marry the rate.” In other words, find the house for the long-term, with the hope that they can refinance down the road, should mortgage rates sharply improve. At the same time, experts suggest it’s always a good idea to plan for the event that higher rates are here to stay. But if you find the right home, then moving out of that rental unit and into a home of your dreams could become a real possibility.
At Beltmann, we’d love to help you prepare for buying your first-time home, moving to a forever home, or any upcoming moving and storage needs — whether it’s simply across town or a full long-distance relocation. As a first-time or repeat homebuyer, your possessions matter. Contact us today for a free contactless quote, and we’d be happy to help walk you through the process.
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