Alex Ford-Robertson/peopleimages.com – stock.adobe.com
The dream of homeownership is alive and well — however, young peoples’ ability to achieve it is less so.
According to a new survey of 1,000 zoomers by the company Clever Real Estate, almost all members of Gen Z (93%) want to own a home, but a majority (60%) are worried it may never happen — and 96% have concerns about the process. An overwhelming 98% of the pool said they “face barriers to homeownership.”
The biggest concerns, Clever found, are financial, with the top-voted worries being that those surveyed won’t be able to afford a home (54%), that there will be unexpected or hidden costs to homeownership (48%) and that mortgages specifically will be unaffordable (45%).
Less significantly, zoomers expressed distress that they wouldn’t qualify for a mortgage, they’d need to make major repairs and that the value of their home will decrease after they purchase it.
“As it stands, only 18% of Gen Z buyers say they could currently afford a home purchase, and few feel optimistic about their future prospects,” Clever wrote of their findings, titled the “Gen Z Home Buyer Report: 2024 Edition.”
Not helping matters are languishing high interest rates and a dearth of available homes for sale, making for a competitive market where cash is increasingly king.
As a result of the odds being against them and the pervasive environment of desperation surrounding homeownership, a majority of zoomers said they’d make serious quality concessions to get their hands on a deed. Some 56% said they’d purchase a residence with asbestos, and 54% said they’d buy one that lacks central air conditioning or heating.
Still, the generation does not prioritize having their own home above all else — 51% “would rather prioritize stable employment,” and 48% would put “building their career” above buying a place.
And despite all the anxiety, Gen Z homeownership rates are in fact “tracking ahead of other generations at the same age,” Clever noted.