If you're part of the younger generation, such as Gen Z, you might be wondering if owning a home is a pipe dream with the current economic challenges. Rising inflation, escalating home prices, and climbing mortgage rates seem daunting, but purchasing your first home is still within your reach, especially with the right help.
Here's how you can make your homeownership dreams come true, with insights from industry pros.
1. Diverse Options for Your Down Payment
The down payment often represents the biggest obstacle. However, you might have more help available than you think. Over 2,000 down payment assistance programs exist to ease the burden. Additionally, nearly half of Gen Z homebuyers received financial gifts from family, which helped them considerably, as per LendingTree data.
You may not need the traditional 20% down—mortgage requirements vary. Engaging with a trusted mortgage professional will help you determine your actual needs and understand the ins and outs of financial gifts.
2. Boost Your Savings by Living with Family
Many young buyers are skipping the rent cycle by staying with family, significantly cutting living expenses to save for a home. As reported by Bankrate, 30% of Gen Z buyers move directly from a family member's home to their own.
3. Expand Your Home Search
When your savings are ready, a real estate pro can widen your search to fit your budget better. Affordable options are more plentiful in suburban and rural areas compared to urban centers. Exploring different types of housing like condos or townhouses can also open up more possibilities. As Colby Stout from Bright MLS suggests, flexibility in home type and location can be crucial for first-time buyers.
4. Evaluate Your Housing Priorities
A good agent will assist you in distinguishing between must-haves and nice-to-haves. Remember, your first home doesn't have to be your forever home—it's a starting point to build equity. Open-mindedness in your house hunt can make a significant difference, as noted by Chase: considering less expensive areas and adjusting expectations can provide an edge.
Bottom Line
Real estate experts know the ins and outs of the market and can guide you through the maze of buying your first home. As Directors Mortgage points out, the journey to homeownership for Gen Z may be complex, but it's definitely achievable with strategic planning and expert advice.
Ready to take the first step towards your own home? Reach out to us to get a free copy of our Buyer's Guide! Let's make your homebuying dream a reality!
