60% of Gen Z Adults Worry They Might Never Own a Home: Report
The aspiration to own a home remains a significant part of the American dream for many, particularly for the younger generation. However, achieving this milestone is proving to be more challenging than ever for them.
A recent study conducted with 1,000 individuals from Generation Z by Clever Real Estate reveals a stark reality: while a whopping 93% of them aspire to homeownership, a majority of 60% are concerned that this goal might remain out of their reach. Additionally, the survey uncovered that 96% are apprehensive about the home-buying process, with a staggering 98% acknowledging that they encounter barriers to owning a home.
Financial hurdles top the list of concerns for potential Gen Z homebuyers. The survey points out that 54% are worried they won’t be able to afford a home, 48% are anxious about unexpected or hidden costs, and 45% doubt their ability to afford mortgages. Other notable worries include not qualifying for a mortgage, the possibility of major repairs, and fears that the value of their home could diminish after purchase.
The economic environment, characterized by persistent high interest rates and a shortage of houses on the market, exacerbates these challenges, creating a highly competitive arena where having immediate cash is a distinct advantage. Faced with these obstacles, many in Gen Z are prepared to make significant compromises to secure homeownership. According to the survey, 56% would consider buying a home with asbestos, and 54% would accept a property without central heating or air conditioning.
Yet, despite the high level of concern about owning a home, Gen Z places a great deal of value on other aspects of their lives. The study notes that 51% prioritize stable employment over homeownership, and 48% value career building more than the pursuit of buying a home.
Interestingly, the pressure and anxieties surrounding homeownership haven’t deterred Gen Z’s overall progress. The report highlights that Gen Z’s homeownership rates are actually ahead of where previous generations were at the same age, showing a resilience and determination that underlies their concerns and aspirations.
This blend of ambition for homeownership and pragmatic approach to career and financial stability reflects the complex landscape young people navigate today. As they confront the realities of the market and their own financial futures, Gen Z is finding their own paths to achieving their dreams, demonstrating that despite considerable hurdles, the dream of homeownership is still very much alive for this determined generation.
