In this video, we explore how Gen Z is beating the odds and becoming homeowners earlier than previous generations—despite skyrocketing home prices, high mortgage rates, and economic uncertainty.
We’ll break down: 🏠 Why Gen Z’s homeownership rate is outpacing millennials and Gen X 📉 How ultra-low mortgage rates in 2020–2021 gave them a head start 📍 The cities where Gen Z is buying homes for under $250K 💰 The role of family support, cosigners, and down payment help 💡 Why Gen Z is more financially cautious—and how it’s paying off 📊 Real stats, market trends, and generational comparisons
Whether you're Gen Z, millennial, or just curious about the future of real estate, this video gives you the full picture of how America’s youngest adults are reshaping the housing market.
📌 Don’t forget to like, comment, and subscribe for more housing market insights and generational finance breakdowns.
00:00In 2023, Gen Z adults, those between 19 and 26, had a higher homeownership rate than millennials,
00:07and Gen Zers did at age 24. 27.8% of 24-year-old Gen Zers were homeowners,
00:14compared to 24.5% of millennials and 23.5% of Gen X at the same age.
00:21But Gen Z only made up 3% of all homebuyers in 2023.
00:27They're entering homeownership with the lowest income, often unmarried, and without children.
00:32Still, nearly 75% of Gen Z said they planned to buy a home within 6 years, despite a tough housing market.
00:41Housing inventory is tight, pushing prices higher.
00:44At the same time, mortgage rates are significantly elevated compared to just a few years ago.
00:49So how is Gen Z affording homes sooner than previous generations?
00:53In January 2021, the 30-year fixed mortgage rate hit a historic low, under 3%.
01:00For many Gen Zers, that was the window of opportunity.
01:05Some locked in mortgage rates under 3%, making their home purchases more affordable than renting in places like college towns.
01:12Others benefited from remote work, choosing affordable cities in the Midwest and South.
01:19Cities like Lincoln, Nebraska, Toledo, Ohio, South Bend, Indiana, and Eugene, Oregon became Gen Z hotspots,
01:28where home prices hovered around $200,000, far below the $500,000 national average.
01:34The homes Gen Z buys often cost under $255,000, and many of them make financial sacrifices, buying older homes or ones that need work.
01:45Unlike millennials, who are drawn to urban centers like Boston and San Francisco, Gen Z is choosing affordability over flash.
01:53Millennials also face the Great Recession, delaying their entry into homeownership and increasing the likelihood of staying with parents longer.
02:01Gen Z learned from that.
02:03They're more financially cautious, careful about college costs, conscious of debt, and intentional with their money.
02:10Still, 31% of Gen Z lives with their parents, and many who do buy homes are not doing it entirely on their own.
02:18Over one-third of Gen Z and millennials expect family help with down payments.
02:23More than 75% of Gen Z buyers have received some assistance.
02:27Co-signers, gifts from family, and financial support are helping Gen Z enter the market.
02:34Those who bought early, especially around 2020-2021, saw major gains as home value shot up.
02:42By 2024, the average home in America cost over $500,000.
02:47Back in February 2020, you needed just $40,000 in annual income to afford a starter home.
02:53Today, that number is about $76,000.
02:58New Jersey offers a stark example.
03:01In 2023, the median home price there exceeded $500,000 and the typical first-time buyer was $35,000.
03:09Some were even closer to $50,000.
03:11Only 14 states, plus one U.S. territory, still offer homeowner assistance funding.
03:17Others have paused programs or are overwhelmed with demand.
03:21A cash infusion, often from parents or partners, is becoming essential for young buyers, especially those without a house to sell.
03:30That's one reason Gen Z is leaning on family more than previous generations.
03:35Interestingly, many Gen Z homebuyers are single.
03:38About half of them are buying homes alone, more than any previous generation.
03:43But being single also makes mortgage approval harder, especially with entry-level incomes and rising student debt.
03:50On average, Gen Z earns more than their parents did at the same age, but they carry more debt, especially mortgage and student loan debt.
03:58In 2022, the average Gen Z homeowner aged 18 to 24 held over $117,000 in mortgage debt, compared to just under $40,000 for the same age group in 1992.
04:11For every $10,000 increase in student loans, a buyer's purchasing power drops 10 to 15 percent.
04:20And job security remains a concern.
04:23While full-time employment rates are slightly higher than 30 years ago, the gain is minimal.
04:28Despite all this, Gen Z is determined.
04:32Many work long hours or multiple jobs during school.
04:35They're clear-eyed about their financial reality, but they're also hopeful.
04:39In 2023, as mortgage rates surged to 8 percent, the Gen Z homeownership rate stalled.
04:46But the early signs are clear.
04:48Gen Z is entering the housing market faster than previous generations.
04:52They're buying smaller homes in cheaper areas, often with help.
04:56But they're buying and reshaping the American housing market in the process.
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