Tips for Gen Z Buyers

The current real estate market has some members of Gen Z and younger wondering if they will ever be able to afford a home. “Between inflation, rising home prices and high mortgage rates, they think all hope is lost,” says Antonella Dininno, Sales Associate at ERA Justin Realty, “But it isn’t. There are ways to achieve it. You just need to know where to start.”

Down Payment Options

“If scraping together a down payment is the main concern,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty, “Come see us. There are more than 2,000 down payment assistance programs designed to make homeownership obtainable.” A knowledgeable real estate agent can help you figure out if you’re eligible for any local or federal down payment assistance programs. “Plus, chances are you won’t need to put down a full 20%,” adds Metzger.

Live with Loved Ones

“It may not be the number one thing you want to do,” says Dininno, “But many young people are moving back in with Mom and Dad in order to save up for a house.” According to the Pew Research Center more than 50% of 18 to 29-year-olds are currently living with their parents. In 2020, that number was at 47%. Today it is up to 52%. It hasn’t been this high since the end of the Great Depression.  However, it works. According to the National Association of Realtors, 30% of Gen Z homebuyers are moving directly from a family member’s home to a home of their own. “It helps to ditch the rent and save up,” says Metzger.

Cast a Broad Net

When it’s time to start looking, it helps to cast a broad net. “Rural and suburban areas are in general more affordable than the city,” says Dininno, “While the city may be more fun, you get a bigger bang for your buck the farther out you go.” Now that so many employers are allowing hybrid work from home situations, the cost and time of commuting is less of a factor for many Gen Z and younger.

Be Flexible

While you’re looking, remember to be flexible. “Chances are you won’t buy your dream home right away,” says Metzger. “It might be a condo or a townhome you share with roommates for a while. But equity is equity and no matter what you buy, real estate is always a worthwhile investment.”

Bottom Line

Yes, the real estate market is tight between high prices and high interest rates, but achieving the American Dream of homeownership is obtainable. Antonella Dininno or any of the agents at ERA Justin Realty can help make your dream a reality. Give us a call at 201-939-7500.