Industry Update: the Future of eClosing and RON

Join industry experts for an in-depth discussion on the future of eClosing and how hybrid and RON closings benefit lenders and borrowers.

DOJ v. NAR and the ethics of real estate commissions

Today’s HousingWire Daily features the first-ever episode of Houses in Motion. We discuss the Department of Justice’s recent move to withdraw from a settlement agreement with the NAR.

Hopes for generational investment in housing fade in DC

Despite a Democratic majority, the likelihood of a massive investment in housing via a $3.5 trillion social infrastructure package appears slim these days. HW+ Premium Content

How Biden’s Neighborhood Homes proposal impacts real estate investors

Dubbed the Neighborhood Homes Tax Credit, the proposal is part of the larger American Jobs Plan legislation — also known as Biden’s infrastructure plan. Here's a look into how it impacts real estate investors.

Real Estate

Gen Z hates renting more than Millennials do, survey shows

93% of Gen Z respondents say homeownership is something to be proud of

A recent study from Apartment List showed that the number of Millennials who plan to keep renting is increasing, with the percentage now over 12%.

And this isn’t because people in their mid-twenties to late-thirties think that apartments are trendy or “hip.”

Rather, the study showed that the pessimistic respondents – those who expect to rent despite wanting to own – are struggling to save up for a down payment. 

Generation Z, made up of those born in 1995 or later, expects to face the same struggles, a recent Freddie Mac survey showed. However, when measured against their elder generation, Gen Z is even less enthusiastic about renting than Millennials are. 

According to the survey, only 19% of the Gen Zs surveyed found renting more appealing than owning a home, compared to 30% of Millennials. Overall, 93% of Gen Z respondents viewed homeownership as something to be proud of. 

“The data show that while members of Gen Z clearly aspire to homeownership, they are realistic about potential barriers and understand the potential benefits of renting,” said David Brickman, CEO of Freddie Mac. “Although these results are good news for the housing markets, they also highlight the challenges many in Gen Z will face as they enter the market to rent or buy.”

Despite the survey revealing that Gen Z tending to be more financially aware for their ages, the group still said they expect to own a home by 30. For reference, the current median homebuying age, according to Freddie Mac, is 33. 

“One of the biggest challenges Millennials face today is the lack of affordable starter homes,” said Sam Khater, Freddie Mac’s chief economist. “Given Gen Z’s desire for suburban medium-sized homes close to urban areas with amenities, demand for entry-level homes will intensify.”

However, there may still be hope: A recent report from Capital Economics showed that starter homes could make a comeback in 2020.

Economists at Capital Economics are anticipating a rise in new homes sold for under $300,000, from under 50% currently to about 55% by the end of 2020. According to the report, this would boost overall housing starts to 950,000 annualized.

Most Popular Articles

The housing market is losing steam

Mortgage applications for new home purchases decreased 3% from May and 23.8% year over year, suggesting buyer fatigue in the housing market.

Jul 20, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please