Gen Z, Millennial Homebuyers Still on the Hunt Despite Market Conditions MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

In spite of current market conditions, Gen Z and Millennials in the U.S. still hold the aspiration of homeownership in high regard and consider it to be a vital aspect of their lives In a new study, RE/MAX reveals the sentiments of Millennials and Gen Z toward homeownership in a consumer survey that was just released.

Interest rates, home prices, and inventory levels have all fluctuated in the housing market during the last few years. According to the survey, current market conditions aren’t making potential buyers change their minds about making a purchase. Although they have certain reservations about housing costs, loan rates, etc., some sixty three percent of Gen Z and Millennial respondents say they are interested, eager, and ready to become homeowners.

“Homeownership is still an important milestone, and our survey shows that Gen Z and Millennials are ready to achieve it,” said Amy Lessinger, President of RE/MAX, LLC. “While current market conditions have impacted timelines, this next generation of homebuyers is resolute in their desire to achieve homeownership. It’s up to us as real estate agents to provide them with the right tools and guidance to help them reach their goals of homeownership.”

Gen Z and Millennials are Ready to Become Homeowners 

Homebuyers in these generations are ready to purchase a home but “have some reservations”.

• Nearly two-thirds (sixty five percent) of Gen Z first-time homebuyers noted they are eager to buy or interested in homeownership but are concerned about:
  • Affording upfront costs—such as down payment and closing costs—when purchasing a home (forty percent)
  • Property taxes when owning a home (forty eight percent)
• Fewer Millennial respondents sixty one percent) than Gen Z (sixty five percent) are eager or interested in homeownership but are concerned about:
  • Qualifying for a mortgage—because of credit scores, debt and income challenges (forty two percent)
  • Maintenance and upkeep costs when owning a home (fifty four percent)
• Fifty-six percent of Gen Z and Millennials are willing to compromise on important factors (e.g., price, location, size, etc.) to become homeowners.
• One-third of respondents said eco-friendly/energy efficient features are most important to have in a home, over technology-enabled features (twenty seven percent) and outdoor/recreational amenities (twenty five percent).

Americans View Homeownership as an Important Part of Life

Gen Z and Millennials continue to view homeownership as an important life milestone.

• Respondents selected the following as their top reasons for pursuing homeownership:
  • To provide a stable place for their family to live (sixty six percent)
  • Have a place to call their own (fifty nine percent)
  • An opportunity to have an appreciating asset (forty four percent)
• For both generations, the most important factors considered when buying a home are:
  • Price (fifty nine percent)
  • Location (fifty four percent)
  • Size (thirty four percent)
  • Neighborhood safety (thirty three percent)
  • Mortgage rates (twenty four percent)

Millennials are More Confident in Their Financial Readiness 

Many respondents are confident in their knowledge of the homebuying process and their financial readiness to buy a home.

• Over half (fifty seven percent) of Millennials are confident in their financial readiness to purchase a home, whereas just under half (forty seven percent) of Gen Z feel the same.
  • A higher percentage of Millennials (forty two percent) have started saving for a down payment versus thirty five percent of Gen Z
• More than half (fifty six percent) of Gen Z and Millennials are confident in their understanding of key financial terms related to homeownership (interest rates, closing costs, escrow, etc.)
  • Fifty-six percent of Millennials and Gen Z reported strong familiarity with the process of obtaining a mortgage
• Gen Z and Millennials are planning to help finance their future home purchases differently:
  • Gen Z plan to use their savings (forty two point eight percent) to help cover the financing while Millennials plan to use a mortgage (forty one point seven percent)
  • Just ten percent of Gen Z and Millennials plan to have assistance from their families

Buyers Want Professional Guidance When Buying and Selling 

Gen Z and Millennials are planning to use real estate agents when buying or selling a home to help guide them through the housing market and homebuying and selling process.

• Nearly two-thirds will use or consider using a real estate agent or mortgage lender to learn about the homebuying process (sixty three percent).
• Roughly ninety percent of respondents noted that they are somewhat or very likely to work with a real estate agent when buying or selling a home.
  • Some fifty nine percent said having an agent guide them through the process from start to finish when buying or selling was most valuable to them
• Additional ways respondents plan to learn about the homebuying process include:
  • Online resources: e.g., real estate websites and news articles (fifty five point four percent)
  • Family and friends (forty four percent)
  • Homebuyer education course (twenty seven percent)

To read the full report, including more data, charts, and methodology, click here.

The post Gen Z, Millennial Homebuyers Still on the Hunt Despite Market Conditions  first appeared on The MortgagePoint.

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