State and City Governments Implement New Programs to Help Gen-Z Homebuyers
High costs have made younger generations reconsider homeownership, but these programs aim to change that
Aug. 7, 2024
Image: fizkes / stock.adobe.com
New government initiatives across the U.S. could help more members of Generation Z enter the housing market.
Since the onset of the COVID-19 pandemic, home prices have increased by 47%. This has led many members of Generation Z to view homeownership as unattainable. However, state and local governments are hoping to change that. According to Route Fifty, some jurisdictions are implementing homeownership programs for young buyers. In Utah, Governor Spencer Cox's administration plans to build 35,000 starter homes by 2028, and Rochester, Minn., has allocated $4 million to develop housing for those earning 115% of area median income. Down payment assistance and savings programs have also become increasingly popular initiatives across states.
A new Ohio program, for example, works with dozens of banks and credit unions to provide high interest rates on savings accounts for participants who open one with the intention to purchase a home. Participants use the savings to cover down payments or closing costs and are also eligible for an income tax deduction of up to $5,000. The program launched in January and nearly 12,000 Ohioans have enrolled, according to Laura Martine, press secretary for the Ohio Treasurer’s Office.
