My, my, how quick those Gen Z kids have grown up, with some now reaching adulthood. But, in this economy, blossoming into an adulthood isn’t so much a celebration as it is a headache. A new survey from St. Louis-based Clever Real Estate reveals that 60% of all Gen Zers worry they might never own a home, and nearly 98% cited significant barriers to homeownership.
The most significant barriers among Gen Z included the high cost of homes (50%) and steep interest rates (31%). But this isn’t mere cynicism — 61% of Gen Z non-homeowners have less than $10,000 saved for a home, which would only cover a 20% down payment on a property valued at less than $50,000.
Despite the fact only 18% of prospective Gen Z buyers believe they can afford a home, it hasn’t stopped them from dreaming. The survey found a majority of Gen Zers (52%) anticipate their first home to cost less than $250,000. Still, 29% anticipate someday owning a home worth over $1 million.
Ultimately, Gen Zers have yet to be dissuaded from eventually buying a home, with 92% saying that owning is important. But, that was not found to be the first priority, since 96% said they prioritize other goals above homeownership such as stable employment (51%), building a career (48%), and starting a family (32%).
Nearly 80% of Gen Z homeowners don’t think the average member of their generation could afford a home, 33% received parental assistance for their down payment, and 31% moved in with their parents to save for their home.
The survey also indicates one in three Gen Z homeowners have struggled to pay their mortgage and one in eight (13%) regret that their mortgage is too expensive. Overall, two-thirds (68%) of Gen Z homeowners express regrets, with 21% saying they didn’t have sufficient knowledge about the home-buying process.
Where did those Gen Zers receive information about the home-buying process? The leading response from 38% of the survey group was TikTok, and one in seven of those homeowners (15%) said the advice they got from TikTok and other social media was bad.
More key insights from the survey study:
- Half of Gen Z (50%) say they'd work a second job to afford a home.
- 57% of Gen Z would be willing to put in an offer on a fixer-upper.
- Of the 40% of Gen Z homeowners who purchased a fixer-upper, 27% regret it.
- More than one in four Zoomers (28%) would offer $50,000 or more above asking price.
- 78% of Gen Z would offer over asking price on a home.
