Could Gen Z Be the Dark Horse in a Recovering Real Estate Market?
In a 2020 survey by Gen Z Planet, a research and advisory firm, 87% of Gen-Z respondents said they wanted to own a home in the future compared with just 63% of Millennial respondents also looking to become homeowners. Of those survey respondents, 68% of Gen-Zers viewed homeownership as a way to build wealth, compared with 60% of Millennials, and though Gen-Zers accounted for an average of just 10% of homebuyers in the 50 largest U.S. metros in 2021, their time is coming soon, Insider reports.
Aging Gen-Zers are entering the housing market with gusto, but when beginning their housing searches, many are finding a series of obstacles to homeownership exacerbated by a turbulent economy and the many inherent disadvantages that come with being a first-time buyer.
And yet the road to homeownership isn't that simple for many Gen Zers. Older members of the generation are more likely to have student debt than millennials did at their age, which could severely limit their housing options. And some members of Gen Z are already discouraged by their housing prospects. In a Freddie Mac survey conducted last year, about 34% of Gen Zers indicated they didn't think they'd ever be able to afford to buy a house of their own, up from 27% who said the same in 2019. Respondents described their biggest hurdles as saving up for a down payment, lacking a credit history, and having unstable jobs.