While mortgage lenders are currently dealing with heavy demand, they need to prepare for a large generation of borrowers soon to come.
Generation Z — defined as those born between 1997 and 2012 — are on the precipice of the prime home-buying phase in their lives and will soon be flooding the marketplace. A 43% share of the demographic plan to purchase a home in the next five years, according to Realtor.com. That equates to about 28.9 million of the country’s 67.2 million people within the generation, based on data from the U.S. Census Bureau.
Another 44% — or 29.5 million Gen Zers — plan to buy a house in the next five to 10 years and the remaining 13% — 8.7 million — estimate waiting 10 years or more. Moreover, a 72% share said they’d prefer to buy a property instead of renting while 45% said they already started saving for a house. The group
“The oldest members of this generation are just entering the professional stage of life and not yet in a financial position to make a big play as first-time buyers — especially in
Although Gen Zers expressed desire to become first-time home buyers, obstacles currently stand in their way. Half of those surveyed pointed to a lack of job stability as a deterrent, 43% said both down payment and affordability hurdles in their coveted location, while 40% said they were unsure of what their future housing needs would be.
Some mortgage companies already set campaigns in motion to appeal to the younger generation. Freddie Mac
