How Gen Z plans to own homes no one thought they could

"While two-thirds of Americans between the ages of 18 and 27 say that homeownership is a lifetime goal, 82% of people in this generation believe that actually buying a home is more difficult for them than older generations, according to a new survey of 1,000 Gen Z adults released today by Realtor.com. Things are so bad, in fact, that 16% of Gen Zers rate housing affordability as one of their top life concerns."

"And it's not just a feeling: Younger generations have been largely locked out of the housing market in recent years because of the affordability issue that's made worse by a few influencing factors, according to Hannah Jones, senior economic research analyst at Realtor.com. In addition to a lack of new housing inventory, the elevated home prices for existing homes and high mortgage rates mean that homeownership really is out of reach for many would-be buyers, she says."

"That's because the survey results, while largely showing how discouraged Gen Z feels, did reveal something that Jones finds encouraging: Nearly three-quarters of respondents have already started saving for a down payment. While respondents predict they'll need about $54,500 for a down payment, which is far less than the $85,000 necessary for a 20% down payment on a home with the national median listing price of $425,000, it's nearly double the most-recent average down payment of $30,250."

Two-thirds of Americans aged 18 to 27 view homeownership as a lifetime goal, yet 82% believe buying a home is harder for them than for older generations. Sixteen percent of Gen Zers list housing affordability among their top life concerns. Reduced new housing inventory, elevated prices for existing homes, and high mortgage rates have constrained access to the housing market for younger buyers. Nearly three-quarters of Gen Z respondents have begun saving for a down payment and estimate needing about $54,500, which is far below the $85,000 for a 20% down payment at the national median price but well above recent averages. Analysts note creative approaches may help some first-time buyers pursue homeownership despite current challenges.

Read at Fast Company