Gen Z homebuyers rise
Generation Z may not be the biggest cohort of homebuyers just yet, but they’re certainly on their way there. In fact, according to new data, the number of Gen Zers holding a mortgage is up 112 percent over the last year.
Generation Z mortgages
According to the recent Industry Insights Report from TransUnion, the number of Gen Zers with a mortgage more than doubled in the last year, jumping from 150,000 to 319,000.
In total, Generation Z homebuyers accounted for 2 percent of total mortgage originations in the last year. That will likely rise in the coming years, as the generation ages.
As the report explains, “Gen Z may soon account for a larger share of mortgage loan growth. However, as the median age of homebuyers is 28 and the oldest individuals in this generation are currently 24.”
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Generation Z credit habits
Gen Zers also took out more car loans, credit cards and personal loans in the last year. TransUnion’s data shows the number of Gen Zers carrying a personal loan rose 45 percent, while those with a car loan jumped 42 percent.
The share of Gen Z consumers with credit card debt rose just slightly less at 41 percent. In total, nearly 8 million Gen Zers currently have a credit card balance.
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According to Matt Komos, TransUnion’s vice president of research and consulting, Gen Z’s credit activity will be interesting to watch, as many saw the impact of the last recession first-hand.
“Both the newest and oldest members of the credit-eligible Gen Z generation are beginning to enter the credit market for the very first time,” Komos said. “The rapid growth in Gen Z credit activity is occurring despite many of these individuals having grown up during the Great Recession. Though the recession itself lasted less than two years, its impact was felt for several years afterward.”
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