Generation Z has taken the lead in the race to own a home.
In 2023, the homeownership rate for Gen Z adults, or those between the ages of 19 and 26, was higher than the homeownership rate of millennials and Gen Xers when they were 24, according to Redfin, a real estate company.
The race is tight, though. About 27.8% of Gen Zers age 24 own a home, compared with 24.5% of millennials at the same age. Gen Xers had a lower rate, at 23.5%, Redfin reports.
“I'm very happy I bought a house,” said 24-year-old homeowner Dominic Verrichia, who bought his Ventnor City, New Jersey, home in October 2020, when the 30-year fixed mortgage rate was 2.83%according to Freddie Mac.
“I didn't know if I was making the right decision [buying a home]”Verrichia said. “I didn't know if it was going to turn me upside down.”
Generation Z represents only 3% According to the National Association of Realtors, this generation is the lowest-income homebuyer and is unlikely to be married or have children under the age of 18 in their household.
In 2023, Nearly three-quarters of Gen Zers said they plan to buy a home within six years.despite a tough market for buyers, according to Rocket Mortgage, a mortgage lending company.
“The housing market is incredibly tough right now,” said Jessica Lautz, NAR's chief economist. “We have very limited housing inventory and have had that for a long period of time. This has driven up home prices at the same time that interest rates are at a higher point than they have been in years, which is making the housing market really unaffordable.”
So how can Gen Z buy a home before their elders? What will this mean for the housing market and the US economy?
Look at the video Scroll up to learn how Gen Z is winning the race to homeownership and how they compare to past generations at the same age.