Gen Z want to own a home soon!
Fifty-nine percent of prospective homebuyers between the ages of 18 and 23 want to buy within the next five years — and more than half have already started saving for homeownership, according to Bank of America's Homebuyer Insights Report.
“It’s exciting to see Gen Z wanting to own a home for reasons like building their personal wealth over time,” said D. Steve Boland, head of Consumer Lending at Bank of America. “Despite their young age, this group is pragmatic and actively planning for their future. They recognize buying a home isn’t easy and have a clear vision not only about where they plan to get help but also how they are willing to help themselves in order to make it happen.”
Seventy-one percent of potential young homebuyers say they know what they want in a home, according to the study. And Gen Zers appear to be prepared to take action with 94 percent saying they are “willing to make intentional sacrifices” to buy. That includes a willingness to get a second job (with nearly half of Gen Z respondents responding affirmatively vs. 38 percent of millennials); being willing to attend a university that will leave them with less student loan debt (34 percent, vs. 15 percent of millennials); and being willing to move in with parents or in-laws (32 percent vs. 23 percent).
Generation Z also appears to understand that barriers to homeownership exist. Nearly two-thirds of potential Gen Z homebuyers think they will receive some financial help to buy. Still, while these prospective buyers (66 percent of them, to be exact) see saving for a downpayment and closing costs as the top barrier to homeownership, they see it as less of a challenge than other generations (compared to 69 percent of millennials, 72 percent of Gen Xers and 74 percent of Baby Boomers).
The other impediments Gen Zers see to homeownership? Covering monthly ownership costs (58 percent) and not knowing enough about where to start (52 percent).