Generation Z is the generation that is most likely to struggle with homeownership, yet a recent report shows that they are also the generation that saves the most money. According to real estate marketing platform Realtor.com, the generation saves more than any other generation, with 21% setting aside 1% to 10% of their monthly income. An additional 25% of Gen Zers say they set aside between 11% and 20% of their monthly earnings.
Yet, only 3% of homebuyers and 2% of sellers are in the Gen Z cohort. That is likely because Gen Z often has lower wages than other generations, with an average annual income of just $45,000. Because many Gen Zers live with family or roommates, they are able to save larger portions of their income, but purchasing a home remains a major challenge.
Gen Z is also entering the real estate market at a particularly challenging time, when interest rates are high, housing inventory is low, and home prices are rising.
In a recent Insurify poll, 13% of Gen Zers who want to own a home believe they will never be able to afford it.
Nearly half of Gen Z rank housing as their most stressful expense, and 23% of Gen Zers said they feel unable to plan their future because they’re not sure what their finances will look like. Read more
