Generation Z (Gen Z) is eager to put down their own roots and achieve financial independence. As a result, theyre turning tohomeownership. According to the latestHome Buyers and Sellers Generational Trends Reportfrom theNational Association of Realtors(NAR), 30% of Gen Z buyers transitioned straight from living under their parents roofs to owning their own homes.
If youre a member of this generation, and youre interested in pursuing your owndream of homeownership, heres 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 byRocket Mortgageidentifiessome of the topmotivatorsdriving Gen Z buyers to purchase a home:
Of those surveyed,34% said that starting or growing their family was their main motivationto 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 becausehomeownershipcan give them more stability (20.8%). Thats because buying a home allows you to stabilize whats 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 dont have that same benefit, and you wont be protected from rising housing costs.
So, if youre ready to start a new chapter in your life or if youre craving morestability, know that your peers feel the same way, and those motivators are why theyre turning tohomeownership.
Gen Zs Next Stop: Where Are They Making Their Moves?
If those reasons have you feeling ready to buy, heres some information onwhereyour peers are finding their homes that could help you withyour search. According to a recentLending Treesurvey, Gen Z buyers are focusing on more affordable areas to help boost their buying power and offset the challenges that come with todaysmortgage 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 atLendingTree,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 trustedreal estate professionalcan 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 withyour goals. Theyll also be able to walk you through how things likeremote workcan help you cast a broader net foryour search.
Bottom Line
If youre a member of Gen Z and are just getting started on your homebuying journey, or if you want to learn more about the process, its important to connect with a trusted Seven Gables advisor. Their expertise will guide you to a home that fits both your lifestyle and your budget.
