Tomorrows Buyers Value Diversity
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Generation Z, 18- to 24 year-olds who are entering the age bracket for first-time home buying, is the first generation in American history with a preference for buying homes in culturally diverse neighbourhoods, according to a Homes.com survey released at the National Association of Real Estate Editors on June 27.
Polling more than 1,000 young adults in the Gen Z age bracket, the survey is the first to examine how Generation Z and millennial habits differ across several facets of home buying.
The survey found that 58 percent of future Gen Z homebuyers prefer a diverse community compared to 12 percent who prefer a homogeneous neighbourhood. Gen Z’s commitment to diversity has important ramifications for national housing policy, cross-cultural enrichment, and the evolution of a post-racial definition of the American Dream.
Misconceptions about down payments. The Gen Z homeownership survey also found that Gen Z-ers have misconceptions about down payments. Despite the availability of lower-cost down payments like those required with 3.5 per cent FHA loans, many young homebuyers believe they will need to save for two or three years to meet down payment obligations unless they get financial help from friends and family. That scenario is unlikely unless they live in an expensive market or don’t use a low-down payment loan.
The vast majority of Gen Z-ers expect to buy a home. 86 percent of respondents reported they plan to become homeowners someday. Only 5 percent don’t, and the remaining 9 percent are unsure. Since Gen Z is even larger than the millennial generation, strong home demand can be expected for many years to come.
Most expect to buy their first homes before age 35. Specifically, 14 percent anticipate purchasing homes between ages 18-24, 48 percent from 25-29, and 25 percent between 3034. If they succeed, they will follow the same schedule as Generation X and Baby Boomers. They will also achieve a much higher homeownership rate than millennials, who were stymied by high unemployment and low income levels for young workers from 2008 to 2013.
Proximity to work is Generation Z’s top priority in selecting a place to live. When asked to rank the most important considerations in deciding where to live, proximity to work (71 percent) as well as to friends and family (52 percent) surpassed urban location (25 percent), proximity to shopping (24 percent) and access to nightlife (12 percent). That means that employers located in suburban and ex-urban areas will find it easier to attract Gen Z employees.
Tomorrow’s Buyers Value Diversity
My name is Manny Quiros, I’m a real estate professional in the “Disney Area”, I have lived in this area since 1999 and have called this area my home and place my wife and I to raise our three wo....
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