Gen Z: The Next Generation of Michigan Homebuyers
While Millennials will still make up the largest group of home buyers for the foreseeable future, a new group of young adults is moving in on the horizon: Generation Z.
This year the oldest of Generation Z (Gen Z or Zoomers as they are sometimes referred to) are turning 25 and, far from being discouraged by the previous generation’s experience. Gen Zers are hot on the heels of their millennial predecessors and ready to get into the real estate market.
The oldest Gen Zers are joining the work force – almost 20% are in full time employment and beginning to plan for their futures. Homeownership is a top priority for many. A recent survey by realtor.com found that Gen Z value homeownership over renting, with 72% wanting to buy a house in the future.
While the previous generation had to contend with the greatest financial crash since the Great Depression, Gen Z have their own obstacles to overcome. Half of those surveyed reported that their biggest barrier to homeownership is job stability, closely followed (43%) by not having a down payment saved. Surprisingly, though, 64% of Gen Zers don’t feel that the Covid-19 pandemic has impacted on their plans to own a home. In fact, more than a quarter of those questioned said it has made them more determined to buy a home.
Unlike their Millennial counterparts, Gen Zers plan to shun the cheaper downtown areas, preferring to live in the suburbs. 51% of them already inhabit suburban areas and nearly half (49%) see themselves buying in the suburbs too.
Currently 82% of Gen Z are single and 80% have no children. But when it comes to house hunting half of them cite having room for their family to grow into as their top priority. So, while 45% of those surveyed are actively saving towards buying a house, several Gen Z buyers may not be hitting the housing market for a little while yet.
When asked about the timeline they’re working towards on homeownership, most admit they will not be looking to make a purchase until at least the next 5-10 years. Only 10% of Gen Z think it’s likely they’ll own their own home within 2 years.
Keep Reading: What Features of the Home do Millennials Look For? Oakland County Lender Explains
Are You a Gen Zer Looking to Buy a Home in Michigan?
Julie Krumholz has been helping Michigan homebuyers for over 30 years and has several loan programs available for various incomes and financial situations. She brings a wealth of experience to her clients and nothing makes her happier than seeing the face of a happy and excited customer at the closing table.
If you are looking for a mortgage lender in Michigan, call Julie from Superior National Bank today at: 586-382-5482 and let her help you navigate through the loan process and answer any questions you may have.
