If you are part of Gen Z, we need to chat! According to the latest Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), 30% of Gen Z buyers transitioned straight from living under their parents’ roofs to owning their own homes. Gen Z is eager to put down roots, achieve financial independence, and turn to homeownership!
If you’re interested in pursuing your own dream of homeownership, here’s 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 by Rocket Mortgage identifies some of the top motivators driving Gen Z buyers to purchase a home:
“Of those surveyed, 34% said that starting or growing their family was their main motivation to 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 because homeownership can give them more stability (20.8%). That’s because buying a home allows you to stabilize what’s 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 don’t have that same benefit, and you won’t be protected from rising housing costs which has been the trend. Growing up in a post-recession era, Gen Z values this stability and investment.
Gen Z’s Next Stop: Where Are They Making Their Moves?
If those are reasons that you may also be considering purchasing, here’s some information on where your peers are finding their homes! According to a recent Lending Tree survey, Gen Z buyers are focusing on more affordable areas to help boost their buying power and offset the challenges that come with today’s mortgage 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 at LendingTree, 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 trusted real estate professionals (*hint* we can help!) can 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 align with your goals. Many young homebuyers find that the North Georgia areas check these boxes, as residents can enjoy easy access to Atlanta and surrounding cities, while being closer to more tranquil landscapes such as Lake Lanier, North GA mountains, stunning parks, and all the amenities these areas offer!
If you’re a member of Gen Z and are just getting started on your homebuying journey, or if you want to learn more about the process, it’s important to connect with a trusted real estate agent. If you are ready to discuss options, give us a call!