Gen Z Got the Memo: Owning a Home Is Worth ItSource: Business Wire
More Than Half of Gen Z Already Saving for a Home, Motivated by Current Homeowners of All Ages Who Say the Satisfaction of Owning Outweighs the Challenges
“It’s exciting to see Gen Z wanting to own a home for reasons like
building their personal wealth over time,” said
While young prospective buyers identify saving for a down payment and closing costs (66 percent) as the top barrier to buying, they see it as less of a challenge than other generations do (vs. 69 percent of millennials, 72 percent of Gen Xers, and 74 percent of baby boomers). Covering the monthly costs of owning (58 percent) and – more so than any other generation – lacking knowledge about where to start (52 percent) are also considered barriers to homeownership by Gen Z.
Gen Z chasing the dream and willing to sacrifice
Knowing that there are barriers isn’t deterring Gen Z, though.
Prospective Gen Z homebuyers are prioritizing saving over frivolous
spending. When asked what they’d do with
- Save it for a down payment than plan their dream wedding (80 percent vs. 20 percent).
- Save it for a down payment than go on a shopping spree (76 percent vs. 24 percent).
- Save it for a down payment than take a vacation (71 percent vs. 29 percent).
Nearly two-thirds of prospective Gen Z homebuyers think they will receive some financial help to buy, most likely from parents (21 percent vs. 14 percent of millennials), down payment assistance programs (17 percent vs. 19 percent of millennials) or other family members (15 percent vs. 11 percent of millennials). However, this help is not necessarily a gift as more than half of Gen Zers think they will need to pay their parents back, compared to 40 percent of millennials.
Gen Z aren’t just planning to ask for help; they are also taking action to achieve their goal. Nearly all (94 percent) are willing to make intentional sacrifices to buy:
- Nearly half are willing to get a second job (vs. 38 percent of millennials).
- Thirty-four percent are willing to attend a university that will leave them with less student loan debt (vs. 15 percent of millennials).
- Thirty-two percent are willing to move in with parents or in-laws (vs. 23 percent of millennials).
A word from the wise: there’s light at the end of the tunnel
Gen Z’s dreams of homeownership make sense given that most current homeowners (93 percent) agree that owning a home is worth the challenges.
Further proving that homeownership belongs on Gen Z’s radar is current homeowners’ contentment with many aspects of their lives:
- Eighty-four percent are satisfied with life overall, compared to 70 percent of prospective buyers.
- Eighty-three percent are satisfied with where they currently live, compared to 65 percent of prospective buyers.
- Seventy percent are satisfied with their financial well-being, compared to less than half of prospective buyers.
“Our goal is to help our clients reach their financial goals, and building their personal wealth over the long term through responsible, comfortably affordable homeownership is one of the biggest financial goals they have,” added Boland.
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About the Bank of America Homebuyer Insights Report
Concentrix Analytics conducted an online survey on behalf of