Generation Z (Gen Z) is eager to put down their 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 from living under their parents’ roofs to owning their homes.
If you’re a member of this generation and are interested in pursuing your 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 critical reason the survey says Gen Z wants to buy is because homeownership can give them more stability (20.8%). Purchasing a home stabilizes 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 won’t be protected from rising housing costs.
So, if you’re ready to start a new chapter in your life or 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?
Do those reasons make you feel ready to buy? Here’s some information on where your peers are finding their homes that could help you 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 of today’s mortgage rates.
Many Gen Z buyers still want the convenience and excitement of city life. However, they 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 the location offers and how they align 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.
Key Takeaway
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 your lifestyle and budget.
Other educational articles about the market and your home search are under Karen’s Blog. Additionally, explore the search bar for other topics of interest.
