5 reasons younger generations are pursuing home ownership now

Buying a home now feels like it is more expensive and challenging than it was for older generations. We all know that is the narrative much of the real estate media pushes out. Yet despite this doomy outlook, younger homeowners, especially those in Gen Z, believe in the value of homeownership. In a recent survey from Gen Z Planet, 87% of Gen Z respondents said they wanted to own a home in the future, compared to 60% of millennials. So why does the younger generation have such a rosy view of home ownership? Let’s discuss a few reasons why younger potential homeowners are excited to buy!

They know real estate values bounce back

One of the prevailing theories about why millennials are nervous about buying is that they saw the effects of the housing market crash in the early 2000s. Many millennials were teens during this period and may have internalized the fallout of that economic slump on the housing market. But Gen Z hasn’t had that experience. Their experience has been almost the opposite. They saw the market correct and grow stronger after an epic fall which may have helped them realize the long-term value of owning real estate.

They have more knowledge

Learning about real estate investing used to take place in airport lounges or community league rec rooms in boring seminars. But thanks to YouTube, Google and a host of real estate courses, younger buyers can access a vast library of knowledge that can help them navigate the real estate market. Using these tools, younger buyers can begin building their real estate portfolios from a young age and use their assets to help them achieve their financial goals.

They have more options

They also have more mortgage options. The traditional 30-year mortgage is only one of many options out there. Younger buyers also use unique mortgage programs to help them buy their first homes. The rise of remote work opportunities has also allowed people to live wherever they want and has made USDA rural mortgages a smart way for younger buyers to buy their first home.

They invest in real estate

Younger homeowners aren’t just buying a home to live in. They’re becoming property managers too. Many younger homeowners are turning their properties into residential or short-term rentals to earn extra income. Some even save on their mortgage payments by taking in roommates to offset their mortgage payments and save more money.

They think the risks are worth it

It may be the fallacy of youth, but the biggest reason Gen Z and Millenials are pursuing their real estate goals is that they believe the risk is worth it. Unlike older generations, financial securities like pensions and long-term job security aren’t guaranteed. So, investing in real estate is a risk that may help younger generations believe that it can help them build equity now, get more financial security and save for retirement.

Buying a house is a big deal, no matter how old or young you are. That’s why you need the right financing to help you achieve your real estate goals. Our PRMI loan advisors can help you get there. So if you’re ready to buy, visit your nearest PRMI office and let’s get you started.