0
0
0

Almost 100,000 members of Generation Z own homes

by

More than 99,000 members of Generation Z — those born in 1995 or after — have mortgages, according to credit agency TransUnion. While this is less than than every other generation — compared to more than 12 million millennials, nearly 24 million members of Generation X, nearly 27 million baby boomers and 5.1 million members of the Silent Generation — it shows that the next generation is not afraid of jumping into the market.

Generation Z homeowners have an average mortgage of $140,000, and only 1.2 percent of their mortgages are 60 or more days past due — which is less than millennials (1.6 percent), Generation X (2.3 percent) and baby boomers (1.6 percent).

Some of the most popular locations for Generation Z homeowners include Kansas City, San Jose, Nashville, and Ocala, Florida, which, with the exception of San Jose, all tend to have affordable housing markets.

Many homeowners who are members of Generation Z are likely getting help from older generations. “The earliest homebuyers tend to get family assistance,” said Aaron Terrazas, a senior economist at Zillow. “Families see it as a worthwhile investment.”

Another reason for Generation Z’s willingness to dive into homeowning is their distance from the housing market crisis — they’ve known the market to be stable more often than not.

The current home inventory is “tight,” and the cost of single-family homes are rising faster than incomes, says Rob Dietz, a chief economist and senior vice president for economics and housing policy for the National Association of Home Builders. Given these conditions, it’s likely that even more members of Generation Z would consider buying homes, but the prices might be too high at the moment.

Read More Related to This Post

Join the conversation

New Subscribe

  • This field is for validation purposes and should be left unchanged.