“Here are the reasons Gen Z want to become homeowners.”
Generation Z (Gen Z) is eager to put down their own roots and achieve financial independence. As a result, they’re turning to homeownership. According to the latest Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), 30% of Gen Z buyers transitioned straight from living under their parents’ roofs to owning their own homes.
If you’re a member of this generation, and you’re interested in pursuing your own dream of homeownership, here’s some information you may find helpful on why and where your peers are buying.
The Reasons Gen Z Want To Become Homeowners
A recent survey by Rocket Mortgage identifies some of the top motivators driving Gen Z buyers to purchase a home:
“Of those surveyed, 34% said that starting or growing their family was their main motivation to buy a home. . . . Along with growing a family comes establishing a home base.”
Another key reason the survey says Gen Z wants to buy is because homeownership can give them more stability (20.8%). That’s because buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost.
When you have a fixed-rate mortgage on your home, you can lock in your monthly payment for the duration of your loan, often 15 to 30 years. If you keep renting, you don’t have that same benefit, and you won’t be protected from rising housing costs.
So, if you’re ready to start a new chapter in your life or if you’re craving more stability, know that your peers feel the same way, and those motivators are why they’re turning to homeownership.
Gen Z’s Next Stop: Where Are They Making Their Moves?
If those reasons have you feeling ready to buy, here’s some information on where your peers are finding their homes that could help you with your search. According to a recent Lending Tree survey, Gen Z buyers are focusing on more affordable areas to help boost their buying power and offset the challenges that come with today’s mortgage rates.
Many Gen Z buyers still want the convenience and excitement of city life, but also value the affordability, open air, and space more suburban areas offer. Jacob Channel, Senior Economist at LendingTree, explains:
“. . . they want to live in a city, but they also want to be close to nature.”
Locating a home that offers both of those things requires expertise. Working with a trusted real estate professional can help you find a home in your budget and desired area. Your agent will know the most affordable neighborhoods to search in. They can also highlight the amenities and features that location offers and how those are aligned with your goals. They’ll also be able to walk you through how things like remote work can help you cast a broader net for your search.
Bottom Line
If you’re a member of Gen Z and are just getting started on your homebuying journey, or if you want to learn more about the process, let’s connect. That way, you have a guide to help you find a home that fits both your lifestyle and your budget.
To view original article, visit Keeping Current Matters.
The 3 Factors That Affect Home Affordability
When you think about affordability, the full picture includes more than just mortgage rates and prices. Wages need to be factored in too.
Want To Sell Your House? Price It Right.
In today’s more moderate market, how you price your house will make a big difference to not only your bottom line, but to how quickly your house could sell.
Pre-Approval in 2023: What You Need To Know
To understand why it’s such an important step, you need to understand what pre-approval is and what it does for you.
Think Twice Before Waiting for 3% Mortgage Rates
It’s important to have a realistic vision for what you can expect this year; advice of expert real estate advisors is critical.
Today’s Housing Market Is Nothing Like 15 Years Ago
In the 2nd half of 2022, there was a dramatic shift in real estate causing many people to make comparisons to the 2008 housing crisis.
The Truth About Negative Home Equity Headlines
News headlines focus on short-term equity numbers and fail to convey the long-term view.