How “generation rent” is approaching home buying in 2022
It is great to see Gen Z and Millennials entering the housing market. While it is a tough buyers’ market with the short supply and increasing rates there are a couple thoughts that need to go with this. For these younger buyers rents are also accelerated and buying a home allows them to pay something towards ownership as opposed to “just” renting. Regarding rates, while they are higher then they were just a year ago, from a historical perspective they are about average. I do agree that the biggest barrier to entry is down payment but there are conventional programs with as little as 3% down and some programs are a true zero percent down but these will have specific parameters that not everyone will fit into.
Article: How “generation rent” is approaching home buying in 2022
- As inflation begins to bite, the rising cost of rent is driving more millennials and Gen Zs to apply for mortgages. While over a quarter of those surveyed still live with their parents, 45% are currently renting and over half (51%) want to buy a home because the cost of rent is too high.
- This generation does not seem overly impressed by big names, preferring instead to research the lending option best suited to their personal needs.
- While traditionally borrowers tend to wait until they have a 20% down payment, this generation thinks differently. Today, 78% would apply for a loan with less than the traditional 20% down payment, while more than half (55%) do plan to put down at least 10%.
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