Though its majority makes just $25,000 a year or less, Generation Z really wants to own a home. According recent data, 82 percent of Gen Z renters think homeownership is the single most important part of the American Dream. Another 57 percent are confident they'll own a home of their own in the future.
That's more than even Millennialsâ€”the largest segment of the homebuying population today, according to the National Association of Realtors.
Generation Zâ€”people born in the late 1990s and early 2000sâ€”is just now coming of age in the housing market. While many are currently renting, it seems they don't plan to stay that way for long.
Maybe it's because rents across the nation are skyrocketing, or it could be the less-than-ideal living arrangements Gen Zers often find themselves in. According to MarketWatch, 82 percent of Generation Z renters live with another person, and nearly half of them have living spaces of 1,000 square feet or less.
Whatever the reason, Generation Zâ€”which outnumbers the Millennial cohort by about 1 million, will likely take the market by storm. As Professional Warranty Service Corporation reported, "they're poised to become a key market for home builders in the near future."Â
Despite being in one of the most competitive rental markets to date, Generation Zers aren't phasedâ€”or even pessimistic. According to Time Magazine, they "prize homeownership like no generation since their great-grandparents." In fact, more than half are willing to forgo social media for a full year to secure their dream home. Another 77 percent say they'd choose homeownership over having their own business.
A Better Homes and Gardens Real Estate study shows that most Gen Zers plan to own a home by age 28â€”a number three years lower than the national average, according to the National Association of Realtors. Considering three in five teens says they've already begun saving up, meeting that deadlineâ€”or even beating it, might not be so hard.
Whenever Gen Zers do join the market, they'll likely buy homes faster and more efficiently than any generation before them. With their digital nature and inherent tech skills, they're already the savviest group of renters the market has seen.
According to MarketWatch, a third of Gen Z renters take a month or less to find new living arrangements. They also make the numbers work in their favor, submitting more applications than other generationsâ€”about 3.1 for every property search. For comparison, Millennials submit about 2.6, while Gen Xers and Baby Boomers submit 2.4 and 2.2, respectively.
Generation Z buyers, like the Millennials before them, are ready to join the housing market. Want to join them? See what mortgage rates you qualify for today.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
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2017 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)