As Gen Z enters the housing market, young home shoppers say they face many barriers to homeownership, and 60% of zoomers worry they might never be able to afford a house. A new survey from Clever Real Estate asked 1,000 members of Gen Z about their feelings toward homeownership. Clever found that zoomers experience widespread anxiety balanced against an urgency to buy into the market before home prices rise even further.
Gen Z is struggling financially Forget buying a home; many zoomers have trouble covering basic living expenses. More than half who don't own a home admit they struggle just to pay rent. Inflating living costs make it tough to save for a down payment, which is traditionally the first hurdle in the homebuying process.
Twenty-nine percent of zoomers say saving for a down payment is a challenge, and 28% think their savings won't be enough. Some zoomers' financial struggles are due to a cooling labor market, as recent graduates struggle to find high-paying jobs. About 27% of zoomers say a lack of stable employment keeps them from homeownership.
Even those with jobs report not doing well; one-fourth of employed zoomers cite entry-level salaries as significant barriers to homeownership. Many Americans' wages haven't kept pace with inflation. Half of zoomers said out-of-reach home prices complicate their homeownership bids, and 31% say high interest rates block their efforts.
"Typical financial barriers for Gen Z buyers are high student loan debt, limited credit hist.