Zillow: Younger Generations Believe in Homeownership, But Don’t Know How To Achieve It
The American dream of homeownership is not dead for Generation Z and Millennials, but they believe their path to get there will be challenging and may require some luck, reported Zillow, Seattle.
Zillow found 52% of Generation Z and 57% of Millennials who don’t currently own a home believe they would need to win the lottery to afford one.
Large shares of both generations (95% of Generation Z and 94% of Millennials) said they would have to make some life changes to make their homeownership dream a reality. About 40% of Millennials said they would need to get a second or third job and 28% of Generation Z said they would need a career change to afford a house.
“These findings highlight the gap between Generation Z and Millennials’ dream of owning a home and their ability to actually make it happen,” said Zillow Home Trends Specialist Amanda Pendleton. She noted mortgage rates have risen significantly since last year, sending monthly housing costs through the roof–the typical monthly mortgage payment is now $431 higher than a year ago. “Combine rising rates with record-breaking home value appreciation and it’s easy to understand why younger generations are wondering how they’ll ever be able to afford a home,” she said.
But both Generation Z and Millennials remain optimistic about the future, Zillow noted. Nearly two-thirds of both generations called it realistic to think they can buy a home within the next five years.