Gen Z: The Next Generation Is Making Moves in the Housing Market

Gen Z (Generation Z) is eager to put down their own roots and achieve financial independence. As a result, they’re turning to homeownership. According to the latest Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), 30% of Gen Z buyers transitioned straight from living under their parents’ roofs to owning their own homes.

If you’re a member of this generation, and you’re interested in pursuing your own dream of homeownership, here’s some information you may find helpful on why and where your peers are buying.

The Reasons Gen Z Want To Become Homeowners

A recent survey by Rocket Mortgage identifies some of the top motivators driving Gen Z buyers to purchase a home:

“Of those surveyed, 34% said that starting or growing their family was their main motivation to buy a home. . . . Along with growing a family comes establishing a home base.”

Another key reason the survey says Gen Z wants to buy is because homeownership can give them more stability (20.8%). That’s because buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost.

When you have a fixed-rate mortgage on your home, you can lock in your monthly payment for the duration of your loan, often 15 to 30 years. If you keep renting, you don’t have that same benefit, and you won’t be protected from rising housing costs.

So, if you’re ready to start a new chapter in your life or if you’re craving more stability, know that your peers feel the same way, and those motivators are why they’re turning to homeownership.

Gen Z’s Next Stop: Where Are They Making Their Moves?

If those reasons have you feeling ready to buy, here’s some information on where your peers are finding their homes that could help you with your search. According to a recent Lending Tree survey, Gen Z buyers are focusing on more affordable areas to help boost their buying power and offset the challenges that come with today’s mortgage rates.

Many Gen Z buyers still want the convenience and excitement of city life, but also value the affordability, open air, and space more suburban areas offer. Jacob Channel, Senior Economist at LendingTree, explains:

“. . . they want to live in a city, but they also want to be close to nature.”

Locating a home that offers both of those things requires expertise. Working with a trusted real estate professional can help you find a home in your budget and desired area. Your agent will know the most affordable neighborhoods to search in. They can also highlight the amenities and features that the location offers and how those are aligned with your goals. They’ll also be able to walk you through how things like remote work can help you cast a broader net for your search.

Bottom Line

If you’re a member of Gen Z and are just getting started on your homebuying journey, or if you want to learn more about the process, let’s connect. That way, you have a guide to help you find a home that fits both your lifestyle and your budget. Contact us at The Bouma Group, Realtors today at 734-761-3060 or info@condohotline.com, and let’s get started!

How to Buy a Condo in One Year: A Step-by-Step Guide

Let’s start the Spring off right. If you’ve been dreaming of a new condo, it’s time to get started! Here’s a month-by-month guide to planning for and buying a new condo.

Month 1: Brush Up on Your Market Knowledge

The best way to get started? Brush up on your real estate knowledge. Scour the market with a fine-tooth comb. Check out things like current inventory in your city, average sales prices, and the listing-to-sales-price ratio.

This research will help you familiarize yourself with the market. Check out Ann Arbor Condo complexes here!

Month 2: Address Your Budget

Let’s finalize our budget shall we? The easiest way to do this is to get pre-approved for a mortgage.

Meet with a lender (let us know if you’d like a recommendation) to review your finances. The lender will go over your financial history, and then let you know what the bank is willing to lend you.

Now you have an idea of what your mortgage will be and what you can afford in a condo.

Month 3: Find Your Perfect Location

Do some soul searching. Where will you be happiest? Explore locations based on their job market, housing affordability, and overall quality of life. The goal is to narrow down your search to one city.

If you have the means, try to take some time off to go and visit a few areas. Once you find an area, it’s time to narrow your search down even further by pinpointing specific complexes or parts of town that will best meet your needs.

Month 4: Find the Right Agent

Find the right real estate agent to help you buy a condo. Trust us: they’ll save you time, money, and more than a few headaches.

If you need any recommendations, let us know. We have more than a few ideas.

Month 5: Define Your Dream Home

Now is the fun part! Start putting together a list of everything you want in your dream home. We recommend starting by defining your “must-have” features. Think of the things you can’t live without. That’s a great place to start.

It’s also important to know the difference between “must-have” (i.e. you need 3 bedrooms and 2 bathrooms) and “nice-to-haves” (it would be nice to have granite countertops, but you can also live without them.)

Month 6-7: Begin Searching

Use a handy home search tool like ours to begin browsing homes for sale in your target area. Once you find a home that you like, it’s time to schedule a tour.

Private tours are often better than traditional open houses because you have more time to walk through the unit, without the pressure of competing with other potential buyers.

At some point in your home-search journey, you’re likely to come across at least one that calls your name.

Month 8: Fall in Love and Make an Offer

You’ve found the one; now make an offer!

Work closely with your agent to compare recently sold condos in the area and craft the perfect offer.

Ask your agent for their advice—like whether or not they think the price is right for this home, as well as what other contingencies you might want to include in your offer. This is when your real estate agent will prove truly valuable: they’ll be able to provide useful insight in order to help you get the home of your dreams for the best possible price.

Month 9: Schedule All the Things

Let’s get down to business. It’s time to negotiate with the seller, schedule an inspection, have your real estate agent complete any re-negotiations (based on that inspection), and get the condo appraised by a professional.

You’ll also have to take care of some more paperwork to finalize your mortgage loan.

Month 10 – 12: Let’s Start Closing

Next, you’ll start the closing process.

Buckle up, because we’re in it for the long haul! Here’s where you’ll finalize your mortgage approval (this requires a ton of paperwork) and meet with an attorney to set closing dates and sign paperwork prior to closing. This is also the time when you’ll review closing fees and the exact monthly costs for your condo.

At the end of it all comes the close. You’ll pay the remaining closing fees, sign all the paperwork, and collect your keys Congratulations! You just bought a home!!!

Ready to Begin?

We’re ready to help. Give us a call today at 734-761-3060 or info@condohotline.com to get started.