Gen Z, the “Zoomers” born between 1997 and 2012, feel challenged to make the dream of home ownership a reality, given today’s higher mortgage rates and rising home prices. Achieving that goal of owning their first home can still be attainable with some strategic planning and resourcefulness.
With home prices on the rise, saving up for a down payment can be a daunting task. Encourage your buyers to investigate the various down payment assistance programs available. These programs can significantly reduce the upfront costs of buying a home, making homeownership more accessible. According to Forbes Advisor, more than 1,200 cities, counties, states, and other agencies offer downpayment assistance. The US Department of Housing and Urban Development (HUD) has an online index of programs in Indiana.
Size & Location Flexibility
According to Redfin News, younger homebuyers need less money than their older counterparts because they tend to buy cheaper homes with smaller down payments. Gen Z buyers are actively looking in affordable housing markets—and neighborhoods. Indianapolis is the second most affordable market for young people—in fact, 20% of mortgage requests in Indianapolis came from Gen Z, according to LendingTree. Gen Z buyers will look in older and inner-city neighborhoods with upside potential and are less selective about schools.
Many resourceful Gen Z homebuyers chose to live with relatives to help them accelerate their savings goals. According to the National Association of Realtors (NAR), about 30% of Gen Z homebuyers transition directly from their relative’s home to a home of their own. As the demand for multigenerational housing increases (one in six Americans lives in a multigenerational household, an increase of more than 270% in the last decade), this can be an important path to homeownership for younger buyers AND peace of mind for the older generations.
The journey to homeownership requires expert guidance. The construction and mortgage experts at Davis Homes stand ready to assist you and your buyers with a smooth, simple, and affordable journey toward a dream home that suits their budget and needs.