The Next Generation Is Making Moves in the Housing Market
Generation Z (Gen Z) is eager to establish their own roots and achieve financial independence. As a result, many are turning to homeownership. According to the National Association of Realtors' (NAR) 2017 Home Buyers and Sellers Generational Trends Report, 30% of Gen Z purchasers moved directly from living under their parents' roofs to purchasing their own homes.
If you're part of this generation and want to pursue your own dream of homeownership, here's some information you might find useful on why and where your peers are buying..
The Reasons Gen Z Want To Become Homeowners
A recent survey by Rocket Mortgage identified 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 important reason that Gen Z wants to buy, according to the report, is that homeownership can provide them with more stability (20.8%). This is because purchasing a home allows you to stabilize your largest monthly expense: your housing costs.
When you have a fixed-rate mortgage on your house, you may lock in your monthly payment for the life of the loan, which is typically 15 to 30 years. If you continue to rent, you will not be protected from growing housing costs.
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 can help you with your search. According to a new Lending Tree survey, Gen Z buyers are looking for more affordable regions to enhance their purchasing power and overcome the problems 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.”
Finding a property that provides both of these benefits demands knowledge. Working with a reputable real estate agent can help you find a property within your price range and in your preferred neighborhood. Your agent will advise you on the most affordable areas to look in. They can also highlight the advantages and characteristics that the location provides, as well as how they align with your objectives. They may also show you how things like remote work might help you cast a wider net for your search.
Let's connect if you're a member of Generation Z and are just starting started on your homebuying journey, or if you want to learn more about the process. As a result, you'll have a guide to assist you discover a property that fits your lifestyle as well as your budget.