Diablo Gazette February 2022
Gen Z: The Next Generation of Homebuyers are here
Many members of Generation Z (Gen Z) are aging into adulthood and deciding whether to rent or buy a home. While the majority of Gen Z have yet to enter the housing market, a large portion plan to, according to a realtor.com report. The report found that 72% of Gen Z would rather purchase a home than rent long-term.
George Ratiu, Manager of Economic Research for realtor.com, says: “With nearly three-quarters of those surveyed preferring to buy versus renting long-term, the housing industry should be prepared for millions of Gen Z buyers to bring a new wave of demand along a similar stage-of-life timeline as the millennial generation before them.”
But why do so many members of Gen Z value homeownership? According to the latest Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), young homebuyers — more than any other age group — want to become homeowners because they want to have a place of their own. They feel one of the biggest benefits of homeownership is having a place that they can make their own by customizing it to their style and personality. Whether that is the décor, painting, or renovations, when owning a home, there is no lease or property owner that can limit the possibilities. In addition, owning a home provides much greater long-term stability and security than renting. Home ownership protects from steadily rising rental costs because the monthly mortgage payment is typically locked in for the length of the loan. A 15- or 30- year fixed interest rate loan is the preferred mortgage.
As a first-time buyer, whether you are just getting started on a homebuying journey, you want to learn more about the process, or you are fully committed to buying your first home this year, it is especially important to connect with a trusted real estate advisor soon as you will not be the only first-time buyer in the market.
According to a recent survey from realtor.com, a majority of first-time buyers surveyed are looking to purchase a home in 2022. The survey notes, “First-time home buyers retain their optimism despite a challenging housing market in the past year. Hoping to achieve their goal of homeownership and provide a comfortable space for their families, young buyers are setting out to learn what they can about the market and setting their list of priorities for their home purchase.”
That means you will likely face strong competition from other first-time buyers. To get a leg-up on that competition, work with a real estate professional to make sure you have the support you need to make an informed and confident decision. Their skill in preparing the offer package, the loan, documentation that goes with it and the nuances that influence the seller and seller’s agent are sometimes the difference between an accepted and a rejected offer.
If you are planning your next move, you are not alone. Just know it is never too early to consider the benefits of homeownership over renting. To learn more, let’s connect today so you have a trusted professional on your side to help you explore your options.
