Homebuying Tips for Gen Z
If you’re part of Gen Z, you might wonder if homeownership is within your reach, especially with the challenges of inflation, rising home prices, and fluctuating mortgage rates. While it’s true that today’s market poses some hurdles for first-time buyers, achieving the dream of owning your home is possible, especially with the right guidance.
Here are some homebuying tips that can help make homeownership more accessible:
Explore Down Payment Options
The biggest hurdle to buying a home is usually saving enough for a down payment and closing costs. Fortunately, there are several down payment assistance programs to help offset these costs. Also, many Gen Z buyers receive financial help from family members to put toward homebuying costs.
Depending on your home loan, you don’t need a 20% down payment, either! Most programs range from 3% to 5% down. Working with a knowledgeable mortgage broker can help you understand your options, determine the required down payment, and guide you on acceptable sources of funds, including gifts.
Live with Loved Ones to Boost Your Savings
Another practical step is to reduce your living expenses by staying with family or friends while preparing to buy a home. You can save more towards your new home by reducing or eliminating your rent and utility costs. The National Association of Realtors (NAR) notes that:
“Notably, 30 percent of Gen Z buyers moved directly from their family member’s home into homeownership.”
Broaden Your Home Search
When you’re ready to buy, casting a wide net in your home search can open up more possibilities. With a still-tight housing supply and affordability concerns, looking beyond the typical single family home can help. Considering suburban or rural areas instead of city centers, or opting for smaller homes, condos, or townhouses can make entry into the housing market easier.
Prioritize Your Housing Needs and Wants
Finally, it’s good to have a real estate agent help differentiate between what you need in a home and what you want. While everyone has an ideal picture of their first home, being flexible and willing to compromise on certain aspects may be worth it. Remember, your first house is likely not going to be your forever home. It may be best for you to get into homeownership, build your equity, and then move up into your perfect home.
So, Can Gen Zers Buy a Home?
With strategic planning and expert advice, buying a home is achievable! We, along with our real estate partners, are equipped with insights and strategies that work, helping Gen Z navigate the homebuying process. Let’s connect and explore how you can set yourself up for long-term success.
