The Future. Gen Zers believe owning a home is now the American pipe dream. As more start to reach the age where they hope to settle down and start families, local governments may need to rethink zoning and construction laws that would allow cheaper, more alternative forms of housing to become available.
Rent rat race
A survey from Freddie Mac found over a third of Gen Zers think they’ll never own a home, while Zillow found over half believe they’ll need to win the lottery to own one.
- Between 1999 and 2002, rent has grown an average of 135%, while income has gone up only about 77%, according to Moody’s.
- So, the median-income household needs to spend over 30% of their pay to afford the average… which officially makes them “rent burdened.”
- For Gen Z, who’s just at the beginning of their career journey, that percentage is much higher, which is why a third lives with their parents and plans on doing so long-term.
- For the other two-thirds, the majority are in complex roommate situations, are moving in quickly with romantic partners, and can’t afford to live in major metros.
It’s no wonder, per the National Association of Realtors, the typical first-time homebuyer last year was an average of 36 years old — the highest it’s ever been.