ST. LOUIS–A new survey confirms what many have expressed: Members of Generation Z are enthusiastic about buying a home, but they face some high hurdles to doing so.
According to the survey conducted by Clever Real Estate, approximately 93% of adult Zoomers want to own a home, with 58% saying they want to own property so they can be “rich and wealthy someday.”
“But with high interest rates and a lack of available homes sending prices soaring, 60% of Gen Z worry they might never own a home,” Clever Real Estate reported.
The Findings
The survey of 1,000 Zoomers about their home-buying plans and strategies found:
- 96% have concerns about buying a home, including 54% who worry they won't be able to afford it and 48% who worry about hidden costs.
- Only 18% of Gen Z buyers say they could currently afford a home purchase, and few feel optimistic about their future prospects.
- 80% of Zoomers are concerned the market will get worse before they buy a home.
- 61% don't feel ready for homeownership at this stage in their life, but with home prices skyrocketing, many don't think they can afford to wait.
- 60% of Gen Z worry they might never own a home.
- 29% think they'll someday own a home worth more than $1 million, but 52% anticipate their first home will cost less than $250,000.
- About 98% of Gen Z say they face barriers to homeownership, with expensive homes (50%) and high interest rates (31%) the most common barriers.
- 52% who do not yet own a home have struggled to pay rent, and 33% have struggled to pay their mortgage.
- 63% of Zoomers have less than $10,000 in savings, compared to just 25% of millennials. Zoomers (17%) are also three times more likely than Millennials (5%) to have nothing saved.
- Some Zoomers are so desperate to own homes, 56% would buy a home with asbestos, and 54% would buy a home that lacks central air conditioning or heating.
- While the average home buyer in the U.S. is 35 years old, 90% of Zoomers think they'll buy a home at a younger age — including 33% who think they'll own a home by the time they're 25.
- Although 92% of Zoomers say owning a home someday is important, 96% say it's not the most important goal in life.
- Gen Z would rather prioritize stable employment (51%) and building their career (48%) over homeownership, among other goals.
- 33% say their parents helped with their down payment, and 31% say they moved in with their parents to save money for their home.
- 79% of Gen Z homeowners don't think the average member of their generation can afford a home, but only 12% feel guilty for owning a home when their peers cannot.
- 68% of Gen Z homeowners have regrets about their purchase, with 21% saying they didn't have sufficient knowledge about the home-buying process.
- 38% of Zoomers say they received information about home buying from TikTok, but 15% of Gen Z homeowners say the advice they got from TikTok and other social media was bad.
For the full study, go here.