The majority of Gen Zers believe they will never be able to become homeowners, according to a new survey published by Clever Real Estate.
In a nationwide poll of 1,000 Gen Zers, 60% of respondents were worried that will never own a home, while 18% believed they can afford a home. Nearly all respondents (98%) cited significant barriers to homeownership that include the high cost of homes (50%) and steep interest rates (31%).
Currently, 61% of non-homeowners Gen Z respondents admitted to having have less than $10,000 saved for a home, which would only cover a 20% down payment on a property valued at less than $50,000. Slightly more than half of the respondents (52%) anticipated their first home to cost less than $250,000 while 29% anticipated someday owning a home worth over $1 million.
But while 92% of respondents said owning a home is important, 96% prioritized other goals above homeownership, such as stable employment (51%), building a career (48%), and starting a family (32%).
As for the Gen Z respondents who are homeowners, 33% received parental assistance for their down payment, and 31% moved in with their parents to save for their home. The survey also found that one in three Gen Z homeowners (33%) have struggled to pay their mortgage, and one in eight (13%) complained their mortgage is too expensive. As for being financially literate in the homebuying process, 21% of Gen Z homeowners admitted they didn’t have sufficient knowledge about the home-buying process and 38% acknowledged their homebuying information came from TikTok.
that’s from your future leaders
It certainly looks like they’re pushing everyone into rentals. Especially if institutional investors take over. If we are being Honest here
As a Realtor in the business for 28 years I am both sad and frustrated that it feels out of reach for so many to own a home.
We need interest rates to come down and soon
It’s not just about interest rates. Inflated home prices, high cost home owners insurance and wages which have not kept up with inflation in lots of areas in the country. Other factors include increased utilities, food prices and everything else that one needs to just survive.
I’m a 29 year realtor and I’m not surprised by the results of this survey.. my young first time buyers are making offer after offer and get beat out in multiple offers, cash offers, higher down payments, stronger financing, appraisal gaps and the list goes on. They are not excited and happy they are stressed out and feel defeated .. it’s not supposed to be like this .. inflation is a very big problem.. raising rates usually lowers home prices but that has not happened and the financial industry is predicting at least 2 more years of high prices.. these kids are in front of us everyday .. I’m sad, angry, scared and frustrated and as a parent and a realtor.. I can’t fix it. 😳
These same people complaining are the people who will continue to elect politicians/administrations that do nothing to correct the problem. The definition of “insanity” is to continue to do the same thing expecting different results.