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Although many major news reports are claiming millennials are a generation of “perpetual renters,” Generation Z is changing the headlines for many younger buyers. Generation Z (commonly called Gen Z) are currently the youngest generation of adults in the United States. Born between 1997 and 2012, the oldest members of Gen Z are reaching prime homebuying age.
According to Apartment List’s 2022 Millennial Homeownership report, nearly 25% of Millennials surveyed said they planned to always rent and never buy a home. Unlike generations before them like Gen X or Baby Boomers, the young folks of Gen Z still see homeownership as a top sign of success, based on a Bankrate survey released in March, 2022. When asked about common features of the American dream, such as raising a family, purchasing a home, and having a successful career, 59% of Gen Z surveyed said that homeownership was a large goal, a close second to a successful career at 60%.
Zillow reported that collectively, Millennials and Gen Z represented 44% of all homebuyers in 2021. This percentage is expected to increase for Gen Z, even with record high home prices.
Don’t believe the myths—no matter your age, homeownership can be an achievable goal.
Even if you’re not ready to begin the homebuying process, the sooner you begin your mortgage education, the better! Learning as much as you can before entering the market ensures you’re as confident as can be.
Often, first time homebuyers are only saving for a down payment. There are other major expenses to plan for, such as closing costs and your first official mortgage payment. Using affordability and mortgage calculators can help you envision what you can reasonably afford and pay for.
While being pre-qualified is also an advantage, pre-approval provides you and your Real Estate Agent a verified and credible indication of what you can afford. When it’s time to make an offer, you can provide your seller with a credible letter that proves your affordability.
Creating a team of professionals, such as a Loan Originator and a Real Estate Agent, can help you navigate your local market and negotiations. When you’re ready to discuss your homeownership goals, contact us today.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.