The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

Inside Look: RealTrends 2021 Brokerage Compensation Study

Steve Murray, senior advisor to RealTrends, gives an exclusive first look at the 2021 RealTrends Brokerage Compensation Report.

Logan Mohtashami on trends in forbearance exits

In this episode of HousingWire Daily, Logan Mohtashami discusses several hot topics in the housing market, including recent trends in forbearance exits and future homebuyer demand in the midst of inventory shortages.

How lenders can prepare for increasing regulatory pressures

As compliance becomes an increased focal point for mortgage lenders and investors, staying ahead of state and federal regulations can be the difference between a flourishing business and one mired in fines.

Real Estate

How much housing does Gen Z already own?

Gen Z spends the least on their home purchase, too

We know Millennials have made their way through the housing market, now Gen Z is, too.

In fact, Gen Z now holds a 2% share of the housing market, according to realtor.com’s Generational Report, and has already caught up to the Silent Generation.

Meanwhile, the next generation up from Gen Z is increasing its hold on the mortgage market.

By the end of the fourth quarter of 2019, Millennials’ share of primary home loan originations grew from 46% from 48%. Meanwhile, Gen X’s share fell to 32% from 34% last year. Baby Boomer’s share remained constant at 17%.

The median price of a home purchased by Gen Z is $160,600, which rose by 7% but it is still lower than what Millennials are paying ($256,500). Gen X and Baby Boomers increased their purchase prices by 4%.

Although there is a considerably narrower price gap in homes by each generation, the gap in down payments is consistent. According to the report, Gen Zers are putting down 5% on their home purchases, on average, while Millennials are putting down 8.5%.

Growth in mortgage debt by Millennials is continuously outpacing Baby Boomers and Gen X, with the median loan amount taken by Millennials increasing.

According to the report, Millennials are taking out a median loan amount of $242,100 in December, which is 8.4% higher than last year.

Baby Boomer mortgage debt grew by 3.6%, and Gen X mortgage debt grew by 1.8%. Gen Z, however, had a median loan amount of $154,000, growing by 7%.

In a study from LendingTree, Millennials are apparently moving north. Now, it seems that the generation after it is moving south.

Gen Z seems to be gravitating towards smaller Midwestern and Southern markets, focusing on inexpensive starter homes with a median purchase price of $160,600, increasing by 11% over the past year.

The top Generation Z markets which ranked lower on the millennial list include Winston-Salem, North Carolina; Oklahoma City and Toledo, Ohio, all of which ranked in the top 10 on the Gen Z list but only 47 to 71 on the Millennial list, the report said.

Interested in exclusive real estate news and commentary? Join HW’s free twice-weekly newsletter OpenHouse to stay informed. Sign up here!

Most Popular Articles

Treasury removes restrictions on investment properties

The Treasury Department and FHFA announced Tuesday that they are suspending certain requirements that were added in January to the Preferred Stock Purchase Agreements (PSPAs) between Treasury and Fannie Mae and Freddie Mac.

Sep 14, 2021 By

Latest Articles

Natural disasters and forbearance: What borrowers and mortgage servicers need to know

The United States is grappling with a sharp rise in natural disasters, including wildfires, an active hurricane season, floods, tornadoes and mudslides. The mortgage industry needs to be proactive in examining programs to help borrowers recover.

Sep 17, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please