Things to Know About a Gen Z Homeowner
The title of this blog may have taken you aback. Are Gen Zers even old enough to become homeowners, you ask? We know. We know. It’s alarming. The reality is, with birth dates ranging from 1997-2012, yes, absolutely, there is a Gen Z Homeowner out there! Maybe more than one!
So what are these young homeowners looking for and how are they already buying their first homes? Of course, there’s an array of answers to that second question (inheritance, help from parents, VA loans that don’t require downpayments, trust fund babies, hard-working, frugal…the list could go on). So let’s dig into some of the facts of the Gen Z Homeowner:
Fact #1: Financial Independence
Unlike their neighboring elders, the Millennial Generation, these kids aren’t trying to move back in with mom and dad to save money. They are ready to spread their wings and gain financial independence. In fact, Forbes tells us that last year, the oldest of Gen Zers were 3% ahead of Millennial homeowners.
In elder Millennials’ defense, when they were 25, it was 2008 and there was a mortgage crisis. And for the elder Gen Zers, many were able to take advantage of the low interest rates a couple years ago before they spiked back up last year. Either way, it’s incredible what this young generation is accomplishing for themselves financially by gaining equity in their early 20s.
Fact #2: Putting Down Roots and Starting Families
This fact is interesting (pulled from a Rocket Mortgage study). 34% of Gen Zers they surveyed said that their main motivation for owning a home is to start or grow their family. We know Millennials are waiting longer and longer to get married and have children, but it sounds like this generation could have an older-school mindset.
Fact #3: Open to Small-Town Living
Perhaps one of the key reasons why this young generation is able to start purchasing homes is the fact they aren’t hasty for city living. They’re looking in smaller or Midwestern cities (Kansas City welcomes you!) where housing is lower and they can comfortably afford their mortgage payments.
Part of this reasoning could be because of the flexibility their jobs offer. Many of them graduated during/after the pandemic and immediately stepped into remote roles. This has allowed them more geographic options.
No matter the motivation, financial position or geographic location, every potential Gen Z homeowner deserves a real estate agent who they can trust, who won’t talk down to them or take advantage of their youth and who can find them the best home for their lifestyle, wants and needs.
If you’re a Gen Zer looking for a home in the midwest, or more specifically, the Kansas City area, we would love to help represent you on this new, exciting journey. The Dani Beyer Real Estate team is thrilled to recently be recognized on KC Business Journal’s list of women-owned businesses. In addition, we have been in the top 1% of realtors in the Kansas City Metro for the past 7+ years. Please reach out with any questions!