The oldest members of Generation Z are barely in their 20s, but many are already planning for a future as homeowners. Of the prospective homebuyers between the ages of 18 and 23 who were surveyed in Bank of America's 2019 Spring Homebuyer Insights Report, 59% said they wanted to buy in the next five years – meaning they’d own a home before the age of 30.
While members of Gen Z are eager to buy homes, there is evidence that shows they could benefit from more education about the financial requirements of homeownership. In the same survey, 52% of Gen Z respondents said they didn’t know how to start the home buying process, and 58% said covering the monthly costs of ownership was one of the top barriers to home buying.
Still, the fact that those in Generation Z are eager to become homeowners is encouraging and presents an ideal opportunity for real estate professionals to capture new business and help them achieve that dream.
Education is the key. Start by connecting prospective buyers with a local independent mortgage professional. They have the expertise to educate borrowers about what kind of payments they can afford and provide them with plenty of options – along with detailed and personalized financial guidance – for their specific needs.
Partnering with an independent mortgage broker is a great way to help homebuyers make the most of the money they have. Mortgage brokers are able to shop around and compare rates from a variety of lenders to help the borrower get the home of their dreams while factoring in property taxes and other financial responsibilities of homeownership. They can also help avoid surprises and reduce common home financing pain points in the long term.
Capturing the new wave of prospective Gen Z homebuyers by providing the resources they need to successfully arrive at the closing table is a great way to grow your business now and set yourself up for success in the future. Partnering with a local mortgage broker can help. Find one, along with helpful home-financing topics and tools like “How Much I Can Afford?” calculators, at FindAMortgageBroker.com.