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

Generation Z (Gen 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 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, it’s important to connect with a trusted real estate agent. Their expertise will guide you to a home that fits both your lifestyle and your budget.

Learn more on Keeping Current Matters.

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Signed Contracts for U.S. Homes Rise for the Second Month in a Row

The numbers: U.S. home sales inched up for the second month in a row, as the housing market continues to be hampered by high rates and a lack of home listings.

Pending home sales rose by 0.9% in July from the previous month, according to the monthly index released Thursday by the National Association of Realtors.

The figure exceeded expectations on Wall Street. Economists were expecting pending home sales to fall 0.5% in July.

Transactions were still down 14% from last year.

Pending home sales reflect transactions where the contract has been signed for the sale of an existing home, but the sale has not yet closed. Economists view it as an indicator for the direction of existing-home sales in subsequent months.

Big picture: High rates and home prices have sent many potential buyers to the sidelines, but those who are purchasing a home out of necessity, or who have the ability to make a cash offer, are still pushing through.

Sales activity was a lot less brisk in July due to the ongoing inventory issue and with the 30-year loan rate at or near the 7% range. And with rates hitting a multidecade high in August, expect the data to continue to show a housing market that’s dragging along.

What the realtors said: “The small gain in contract signings shows the potential for further increases in light of the fact that many people have lost out on multiple home buying offers,” said Lawrence Yun, chief economist at the NAR.

“Jobs are being added and thereby enlarging the pool of prospective home buyers,” he added. “However, rising mortgage rates and limited inventory have temporarily hindered the possibility of buying for many.”

Market reaction: Stocks were up in early trading on Wednesday. The yield on the 10-year Treasury note was around 4.1%.

Keep reading on Realtor.com.

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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As Featured in West + Main Home Magazine: Rising to the Challenge

Katie Foreman W+M Agent

"I have a background in architecture and my husband is a mechanical engineer who grew up doing house projects." said West + Main agent Katie Forman.

"It was hard! This was our first house project and we had to learn how to delicately tear up and relay wood flooring, build an island from scratch, move and install all appliances, and sand, prime and paint cabinets after rebuilding them."

The one thing Katie and her husband hired out was the gas line relocation on the fly! They started demolition before they had anything planned or selected, but had saved inspiration photos on Instagram for about a month.

"We made decisions as they came up and ordered finishes when needed," Katie explained. "We had very limited money for this project, so some of things were limited to what Facebook marketplace had: the white enamel sink, sink faucet and West Elm wall sconces."

"We didn’t have much of an ‘original vision’ other than ‘anything else’. We created a vision as we went," said Katie. "Because there was no planning at the time we started demoing, we didn’t know where the project would take us. Each time a design element needed to be chosen, we would look back through our inspo photos and then quickly make a decision that we thought was best. We had a VERY limited budget and decided to wait another year. However, we worked and worked on finding a layout that would let us reuse all the cabinets, the majority of the appliances and the wood floor."

One night at 11pm, they sat on the couch looking at the wall dividing the living space and kitchen. That night, they tore down the dividing wall…and from there Katie had to scurry to find designs they liked, the finishes and paint colors. Nothing was ordered or planned fully!

"We used a small local company to do the countertops with a lead time of only a few weeks," said Katie. "Everything else was time-dependent on our own work schedules. We did almost the entire kitchen between 9pm-12pm on weeknights once our babe was asleep!"

KITCHEN REMODEL TOTAL: $8,500

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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As Featured in West + Main Home Magazine: A Backyard Pond Renovation

Corey + Rick, clients of W+M agent Becky Elhardt

It all started with Corey + Rick inheriting a small pond when they purchased their home with the help of West + Main agent Becky Elhardt. The space was perfect for it, but they wanted a bigger, 7500-gallon hybrid pond instead.

““Be patient, do your research, and remember to have fun - part of the adventure is getting there.””

— Corey

The original pond was small, and they wanted something much larger to house their fish. As the avid do it yourselfers that Corey + Rick are, they quickly jumped onto the project. It started with removing their original pond - digging up some concrete and dirt. From there, the project got much more tedious. It took them lots of trial and error and more professional help than originally intended.

They knew they wanted to incorporate lower maintenance, fish and a natural rock infrastructure. However, they didn’t fully realize this would entail a much larger budget. Corey + Rick were lucky enough to have the help of one of their close friends, Craig Gagne of  Gagne’s Concrete. Bringing Craig onto the project was a life saver, as he has “an impeccable attention to detail and commitment to seeing every aspect of the project through to completion and excellence.”

Corey's favorite moment was watching Rick and Craig transform her backyard into a sandbox playground, gleefully playing with the Bobcats like children. After a much anticipated journey to completion, Corey + Rick have a fully functioning and beautiful koi water garden pond.  

Related Links

• As Featured in West + Main Home Magazine: From Inspiration to Renovation

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• As Featured in West + Main Home Magazine: From Dream to Reality

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Just Listed: Sunset Lover's Dream on Turtle Lake in Sought After Shoreview!

A rare opportunity to own 84ft of lakeshore on Turtle Lake in the highly sought after city of Shoreview.

This luxurious 2021 Zawadski Homes rambler is a dream home for lake and sunset lovers! Enjoy the immediate sense of tranquility as you pull into the private west facing lot, situated on just under an acre of land. An open concept floor-plan invites you in to wall-to wall lake views and a custom designed sunroom, perfectly welcoming after a long day, or the kick-off to your next social gathering. The primary suite is the tranquil escape everyone dreams of. From stunning lake views, to the luxury custom touches in the bathroom, you’re sure to find ultimate relaxation (not to mention ensuite laundry). Picture the perfect mixture of high-end finishes and casual cozy living as you enter the lower level, which features a full kitchen and bar- perfect for hosting the next big game, or snacks after a long pontoon ride-you won’t be short on entertaining space! Three more bedrooms, two bathrooms, and a full laundry suite complete the decadence of this spectacular lower level. Before you leave, don't forget to imagine your next game room or guest suite in the yet-to-be-finished space situated above the 4 garage stalls. The space everyone dreams to have. Ample storage, top-of-the-line appliances and systems are what perfect this 2021 Dream Home's allure! You're going to love living here!

Listed by Vanessa Phippen for West + Main Homes. Please contact Vanessa for current pricing + availability.

 

Have questions?
West + Main Homes
(405) 652-6635
hello@westandmain.com

Presented by:
Vanessa Phippen
651-769-7336
vanessa@westandmainmn.com

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