Clever Real Estate in St. Louis has released a new survey examining Gen Z’s views and expectations on home ownership, revealing that 60% of this generation fears they may never own a home.
Gen Z includes those born from the late 1990s to early 2010s.
Among the respondents, 93% of adult Gen Z members express a desire to own a home, with 58% seeing it as a route to wealth.
However, 96% have concerns about purchasing a home. Specifically, 54% worry about affordability, 48% about unexpected or hidden costs, and 45% about affording a mortgage.
Ninety-eight percent acknowledge facing barriers to homeownership, with 50% citing high home prices and 31% high interest rates.
Eighty percent believe the market will worsen before they can buy a home, a troubling prediction since 61% feel unprepared for homeownership but don’t think they can wait due to rising costs.
Additionally, 29% of Gen Z members report struggling to make ends meet.
Sixty-three percent have less than $10,000 in savings, and 17% have no savings at all.
The survey also delves into Gen Z’s expectations for their future homes. One in five expects their first house to cost $450,000 or more, while 29% anticipate owning a home worth over $1 million someday.
Conversely, 52% expect to buy a starter home valued under $250,000, and 57% are open to purchasing a fixer-upper.
Despite these mixed findings, Gen Z remains optimistic about eventually buying a home, with only 4% doubting they will achieve this milestone.
However, 96% say it’s not their top life goal, prioritizing stable employment, career building, starting families, getting married, and traveling higher.