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Gen Z’s Homeownership Hopes Are Fading, Study Shows

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  • Since 2019, Gen Z’s view of home ownership has dimmedaccording to mortgage buyer Freddie Mac.
  • Major obstacles include student loan debt, down payment, and lack of job security.
  • This is exacerbated by high mortgage rates and a shortage of housing supply.

For the ever-growing Gen Z, the last few years have dashed all hopes of being able to afford a home.

About 34% of the youngest generation between the ages of 14 and 25 believe they can’t afford their own home, according to a Freddie Mac survey released this month. That’s up from 27% who felt this way in 2019, the last time the survey was conducted, according to the report.

Some of these young people are using social media to express their concerns and frustrations and seek help. Facebook user JJ Fay said she was 23 and explained she owed money, including her student loan debt, but despite her poor credit, she I was hoping there was still a way to buy a house.

“What’s the best way to improve my credit?” she asked with a screenshot of a credit score of 556, which is considered very bad, according to Insider’s personal finance team. did not respond to a request for comment.

Faye is not alone. In fact, the investigation revealed two of the reasons she was depressed about her homeownership prospects.

The weight of student loans was one of the main complaints filed by Freddie Mac. Of his 1,749 respondents to Freddie Mac’s survey, 22% said that being obligated to pay back college and other education loans is why buying a home is so difficult.

About 39% of the survey said they had difficulty saving for a down payment, 27% said they didn’t have a good credit history, 27% said their jobs were too precarious, and 11% said they struggled. The stated credit card debt is too high.

In addition to these struggles, these young people also have to contend with a real estate market with fundamentals such as: Until recently, in some cities — are getting harder to buy. With interest rates on 30-year mortgages above his 6% and housing shortages continuing, house prices are out of reach, says Freddie Mac’s Single Family Equitable His Housing. Pam Perry, vice president in charge, said in a release on the investigation.

Young Americans are also watching especially overstretched in their credit card debt, according to the Federal Reserve Bank of New York.

“Generation Z has taken notice and their hopes of owning a home have waned as potential problems they may face when buying a home have come to the fore.

It’s not that these adults don’t want to own a home, according to research. They believe that owning a home gives them ‘privacy’ and ‘independence’. Economically, according to studies.

But some were able to beat the odds and buy a home before they turned 25. An insider interviewed five of her earlier this year, one found a credit union willing to offer a 100% loan to avoid a down payment, and another said she’d help a first-time homebuyer. Turns out I took advantage of the state programs they offer.

Still, the majority of Gen Z seem unable to get their finances back on track, as some numbers confirm. For example, according to the National Association of Realtors, the average age of a first-time homebuyer this year has risen from 33 to 36.

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