Tips for Younger Homebuyers: How To Make Your Dream a Reality
If you’re a member of a younger generation, like Gen Z, you may be asking the question: will I ever be able to buy a home? And chances are, you’re worried that’s not going to be in the cards with inflation, rising home prices, mortgage rates, and more seemingly stacked against you. While this housing market is challenging for first-time homebuyers, it is still achievable, especially if you have professionals on your side. Here are some helpful tips you may get from a pro.
1. Explore Your Options for a Down Payment
If a down payment is your #1 hurdle, you may have options to give your savings a boost. There are over 2,000 down payment assistance programs designed to make homeownership more achievable. Additionally, 49% of Gen Z homebuyers received help from loved ones for a down payment according to LendingTree. You also likely won’t need to put 20% down (unless required by your loan). Work with a trusted mortgage professional to explore options and guidelines for gifts from family.
2. Live with Loved Ones To Boost Your Savings
Many Gen Z buyers are moving back in with friends or family to reduce housing costs and build savings faster. As Bankrate explains:
“… many have opted to stop renting and live with family in order to boost their savings. Thirty percent of Gen Z homebuyers move directly from their family member’s home to a home of their own, according to NAR.”
3. Cast a Broad Net for Your Search
Once you’ve saved enough, a pro can help you explore strategies to open up your pool of options. Considering suburban or rural areas, smaller homes, condos, or townhouses can make homeownership more affordable. Colby Stout, Research Analyst at Bright MLS, explains:
“Being flexible on the types of home (e.g., a condo or townhome versus a single-family home) and exploring more affordable neighborhoods is important for first-time buyers.”
4. Take a Close Look at Your Wants and Needs
Your first home doesn’t have to be your forever home. Prioritize must-haves vs. nice-to-haves with an agent’s guidance, and learn how equity can help you in the long term. As Chase advises:
“An open-minded approach to house-hunting may be one way for Gen Z homebuyers to maintain some edge. This could mean buying in areas that are less expensive. Differentiating needs vs. wants may help in this area as well.”
Bottom Line
Real estate professionals have expertise on what’s working for buyers like you. Lean on them for tips and advice. As Directors Mortgage notes:
“The path to homeownership may not be a straightforward one for Gen Z, but it’s undoubtedly within reach. By adopting the right strategies, like exploring down payment assistance programs and sharing living costs with relatives, you can bring your dream of owning a home closer to reality.”
Let’s connect to get you set up for long-term success.
