Homeownership continues to be something to strive for among “Generation Z Adults,” the demographic cohort following Millennials, according to a new survey from Freddie Mac. This survey of respondents finds that the attitudes of Gen Z adults (ages 18-25) are largely positive when it comes to the idea of homeownership, although they are increasingly aware of the obstacles they may face.
One in three Gen Z adults (34%) say homeownership at any point seems out of reach financially—which rises slightly to 35% of Black respondents and more to 50% of Hispanic respondents. When this survey was last fielded in 2019, 27% of Gen Z adults said homeownership is out of reach financially.
Gen Z adults identified the following as the top five hurdles to homeownership:
-Saving for a down payment (39%)
-Not having a sufficient credit history (27%)
-Unstable job situation (27%)
-Student loan debt (22%)
-Credit card debt (11%)
“Currently in the housing market, we’re seeing rising mortgage rates, insufficient supply and elevated house prices bringing about significant affordability challenges,” said Pam Perry, Single-Family Vice President of Equitable Housing at Freddie Mac. “Gen Z has taken notice and their hopes of homeownership have waned as the potential issues they may face in purchasing a home have become front and center.”
Like the 2019 survey, Gen Z adults prefer homeownership over renting and believe owning a home provides more privacy (96%), is something to be proud of (95%), and allows for more control and independence (92%). The latest survey data also shows that Gen Z adults acknowledge the benefits of renting, citing flexibility (76%), being close to the “action” (65%), and less stress than owning (63%) as positives. This is especially true for Black and Hispanic adult respondents, many of whom view renting with pride (71% and 49% respectively) and a way to build community (41% and 43%, respectively).
As Gen Z (ages 14-25) prepares for and takes on additional financial responsibility, the survey shows that they have good financial role models in their lives who demonstrate financial responsibility. Eighty-nine percent of Gen Z includes their parents as one of their top three most influential on views of money and a go-to resource for financial advice.
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