Almost 80% of Gen Z Believe They’re Priced Out of Homeownership, Clever Finds

(Image courtesy of Anna Shvets/pexels.com)

Clever Real Estate, St. Louis, Mo., released a new study delving into Gen Z’s feelings about homeownership, finding 79% believe they are priced out completely.

Eighty-one percent said they can’t afford a home currently and 82% said they’re worried the market will continue to worsen before they’re able to buy. Nine in 10 do want to buy a home in the future.

Nearly half–or 46%–report struggling to pay their rent every month, and 66% feel more worried about their future housing security than they did a year ago. Thirty percent say they’ve considered squatting or living in their car.

When asked why they do want to buy a home, 51% of Gen Z respondents say they want stability, and 44% said they wanted more privacy and wanted more control over their living situation.

Much of it comes down to price–47% of Gen Z saying that high prices are hindering their ability to buy, and 28% pointed to the struggle to save for a down payment and high interest rates. Three-quarters say the rising cost of living has made it “impossible” to save for a down payment, and 48% say they plan to put down less than 20% for a down payment–with 22% saying they’ll put down less than 10%.

Some are despondent–49% say homeownership is so far out of reach there’s no point in them trying to save now.

Slightly over half–52% of Gen Z–say they’d feel unaccomplished if they never bought a home, but 95% say homeownership is not their most important goal in life.

Of those in Gen Z who have already purchased a home, 33% say they moved back in with family to save money, 28% say their parents helped with a down payment and 19% said their parents bought their home outright.