The next big wave of potential homeowners, the Gen Z demographic between the ages of 18 and 23, are eager to purchase residential property, according to newly published Bank of America Homebuyer Insights Report
The new report found 59 percent of Gen Z respondents are eager to buy a home within the next five years, which means they will be homeowners before turning 30. More than half of respondents have already began saving for a home to buy, although 66 percent said saving for a down payment and closing costs were their main obstacles. Nearly two-thirds of prospective Gen Z homebuyers believed they would require some financial help to buy, most likely from parents (21 percent), downpayment assistance programs (17 percent) or other family members (15 percent)—and more than half added they think they will need to pay their parents back if they receive parental funding for their home purchase.
“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.”