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homeowner

Gen Z Perceived As Hopeless When It Comes To Homeownership, But The Generation Is Not Giving Up 

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According to a new survey from Realtor.com®, while Gen Z is realistic about the multitude of challenges that stand in the way of them becoming homeowners, they’re not giving up. The survey was compiled utilizing information from 1,000 adults aged 18-27 who currently own, or hope to own, a home. 

Generation Z currently consists of those aged from 13 to 28, with the oldest of the group being a decade younger than the current average age for first-time homebuyers. 

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It found that 82% of the respondents believe it’s harder for their generation to buy a home compared to previous ones, with 16% saying housing affordability is the biggest concern. 

67% of respondents, about two-thirds, view homeownership as an important lifetime goal, while 69% believe that real estate is an opportunity to generate wealth. More than half of the respondents (51%) think homeownership is a major part of the modern American dream.

Even though half of the respondents stated that they feel ready to buy a home, only 36% believe they’re financially ready to do so. 

The survey asked the respondents about the top milestones they believe to be most important in adulthood. Advancing one’s own career ranked as the top milestone, with 49.5% responding accordingly. Right under that was buying a home, followed by getting married or having children. 

Career growth and homeownership being recorded as the top two milestones among this generation makes sense, as many of the respondents felt that in order to purchase a home, they need to feel stable and advanced in their career to feel secure enough to do so. 

82% of respondents said that a higher-paying job would make them more motivated to buy, with 80% stating they would want to buy if they could afford it in general. 

Getting more specific, the survey showed a minor gap in gender priorities with 52% of Gen Z women prioritizing their careers over other adult milestones, compared to 45% of Gen Z men. 

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23.7% of men ranked buying a home as their first goal compared to 19.4% of women. 

While affordability is a major concern, Gen Z is taking action to save for homeownership, with nearly 75% of respondents claiming to already be saving for a down payment. They estimate they’ll need an average of $54,500. 

The survey suggested that Gen Z who are hoping to become homeowners, or already are, are prioritizing steady, dependable strategies for saving. One-third of respondents have in the past, or currently are, working a second job to save up for their down payment. 

Around a quarter of respondents said that they have, or are willing to, move to a more affordable housing market to save up, and fewer have plans to borrow from family, invest, or rely on stock gains. 

When it comes to what Gen Z matters the most for buying a home, 33% prioritize affordability, 18.5% want to find a home that meets their space requirements, and 17.9% put an ideal location at the top of their list. 

44.5% said their ideal home is three bedrooms, and almost 90% said that they would prefer either 2, 3, or 4 bedrooms. 

The respondents also showed 43% of them wanting to wait to buy a forever home with 30% expecting to first get a starter home and then upgrade later on.

home

Homebuyers In America Were, On Average, Older And Richer Than Ever This Year

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According to a new survey from the National Association of Realtors, in 2024 a record number of Americans were older and utilized an inheritance to help finance buying a new home. 

The survey found that first time home buyers in America were older and wealthier than previous years between July 2023 and June 2024. The report emphasizes a struggle that many Americans are facing when it comes to buying a home. Increasing prices and record-high mortgage rates have remained consistently high.

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According to reports from CNN, first-time homebuyers had an average household income of $97,000, a near $2,000 increase from last year. The average age of first-time homebuyers was also 38, the highest it’s been on record. 

“We’re seeing a dichotomy in this real estate market where those first-time homebuyers are not just your traditional first-time buyers, like schoolteachers or first responders, really entering into the market,” said NAR deputy chief economist Jessica Lautz. 

“The people who can get in are really a select few.”

Within the last year, first-time homebuyers decreased to just 24% of all homebuyers in America. This is the lowest percentage since the NAR began collecting data back in 1981.

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25% of first-time buyers were surveyed to have used a “gift or loan from a relative” to help finance the purchase of their home. 

Lautz said that it’s likely the overall decline in first-time homebuyers using help from family members parallels how they’re also getting older.

“Everyone’s situation is different, but that’s one of the things that seems to be working in conjunction. That seems to be dropping off at the same time as the median age is crawling up,” she said.

The NAR report also showed a major divide with Americans who owned homes during the recent spike in home values and those who are in the market for a home.  

Repeat homebuyers in America have also gotten older on average; the average age increased from 58 to 61 in a year. Repeat buyers also had an increase in average household income, rising to $114,300 from $111,700. 

“The report shows both the struggle in America to secure homes to purchase, and then also people making housing trades with record levels of housing wealth,” Lautz stated.

Investing in Real Estate

Tips For Investing In Real Estate Right Now 

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Now that the Covid-19 pandemic is beginning to slow down a little, many are beginning to take on new business endeavors. Real Estate investments have been on the rise within the past year, especially among first-time investors. So what should you know as you enter into your investments in 2021?

Many experts believe that first-timers should always find a mentor who they can trust to guide them in their initial investments.  Realty ONE’s CEO Kuba Jewgieniew, explained how now that more individuals are opting to stay home for work, looking at trends in the market has never been more important. 

“With fewer people returning to a physical office and many more people reevaluating their life choices, we’re seeing a resurgence in cities like Phoenix, Arizona, our headquarters’ home of Las Vegas, Nevada, and even once-less-popular markets like Boise, Idaho,” Jewgieniew explained. 

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“As more people move to these metros but also out to the suburbs to get a bigger space for less money, we’ll see even these areas become more popular, driving home prices higher.”

“An area with higher property values has the potential the yield a more lucrative real estate investment. So pay attention to on-the-rise hotspots—that can be a certain city or even a specific neighborhood—when deciding where to invest,” Jewgieniew explained.

Apartment buildings and boutique hotels have been predicted to receive a slew of investments in the coming fiscal year as well, which Jewgieniew thinks will lead to a larger presence of tech giants in our communities:

“I anticipate that retailers like Amazon will buy up these malls and convert them into distribution centers, creating jobs near the former malls. I believe that a lot of these apartments near the malls are going to get converted into condos to accommodate the workforce.”

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Jewgieniew explained that it’s important to build an organized business plan before making any official decisions as well.

“It’s not just about how much money you have and what income the building creates; you’ll need to factor external factors such as interest rates, vacancy rates, and occupancy rates into the equation too.”

Finally, Jewgieniew urged first-time investors especially to not get too excited by the thrill of investing in a new property, and take their time when it comes to reading all the fine lines. 

“A year ago, I would have said something different, but do not try to get in and get out quickly. Buy it, hold it long term, and focus on cash flow. Competition for these properties is intense right now, so you may have to pay a little more than you should to acquire one—and since construction materials are also extra expensive, it’ll be harder to turn a profit.”

Overall, just be smart with your money and make sure you’re making investments that will benefit you in the future. “If you’ve got a business plan in place and have a network of resources, like a knowledgeable real estate pro, then now could be a good time to invest in a flip property.”

Unemployment Claim

1.3 Million Americans Applied For First-Time Unemployment Last Week

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Another 1.3 million people have filed for first-time unemployment this week, according to the US Department of Labor. These filings come nearly four months after the coronavirus pandemic began. While that number is 10,000 less when compared to the prior weeks data, the fact that millions of Americans are filing for unemployment continuously in the middle of a global health crisis is staggering. 

Rubella Farooqi is the chief US economist for High Frequency Economics, and recently spoke with the media about the high risk of permanent job losses that will extend beyond the pandemic. 

“Overall, filings remain high and are declining at a stubbornly slow pace. The pace could slow even further or reverse in coming weeks in response to a surge in virus cases and related closures of businesses.” 

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Continued claims, or unemployment claims from workers who have filed for at least two weeks in a row, has remained at around 17 million each week. On an unadjusted claim basis, the claims rose by more than 838,000 within the last week alone. This was the first major increase in both unadjusted initial and continued claims for unemployment in several weeks. 

This consistent rise in claims is further proving that Covid-19 recovery in terms of health and the economy is stalling and continuing to dwindle. The reports have made it clear that every state that’s decided to prematurely reopen is now seeing massive spikes in cases and deaths. For example, Florida is now being referred to as the new epicenter for Covid-19 because of how poorly health and safety procedures are being enforced. Beyond the catastrophic health implications that this increase in case numbers implies, the economic toll it’s having on citizens is just as severe. 

Glassdoor Senior Economist Daniel Zhao recently spoke with the media about the unemployment benefits in this country and the lack of effort from Congress to extend the packages and increase the financial compensation, despite being in one of the worst health/economic conditions America has ever seen. 

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“The risk of a surprise drop in employment in July is rising, pointing to a roller coaster recovery as the labor market starts to turn down again.”

Almost 14.3 million Americans have claimed continued pandemic benefits across 48 states during the month of June; nearly 406,000 a week. That number of first-time filers for pandemic unemployment assistance has increased to almost 1 million this past week alone. 

The pandemic program specifically provides temporary benefits to workers who typically aren’t eligible for unemployment. This includes freelancers, independent contractors, the self-employed, and patients who are currently suffering from Covid-19. 

Each state in America has collectively delivered more than $35 billion in benefits to its residents last month; for comparison, they only shelled out about $4 billion in March before the virus became a major issue. The reality is, however, more states are likely to look to the federal government for loans within the coming months, as a majority of them have already spent their budgets trying to assist their unemployed residents.