Millennials Are Redefining Home-Buying Standards—and Gen Z Is Next

The home-buying approach varies from generation to generation—and in order to overcome down payment hurdles, millennial buyers are transforming the standards of homeownership set by baby boomers, according to the 2017 Zillow Group Report. In fact, less than half (39 percent) of millennials submit offers with the recommended 20 percent down payment. Twenty-one percent put down the minimum: 5 percent or less.

The financial challenges don’t stop at down payments. Thirty-three percent of millennial buyers report having difficulty qualifying for a loan, and 43 percent have trouble finding out what they can afford. These complications likely stem from a lack of experience, as 71 percent of millennial buyers are purchasing their first home.

“In many cities across the U.S., the housing market is extremely competitive, especially for first-time buyers who are looking to purchase a starter home,” says Zillow Chief Economist Dr. Svenja Gudell. “Young buyers often start their careers in fast-growing cities in which the market is particularly tough—and they’re trying to save for a down payment while making record-high rent payments.”

Millennials, however, will look for creative ways to achieve the home-buying dream. Twenty-nine percent of millennial buyers ask friends or family for down payment help, often coming up with the full amount using various sources.

Millennials will also jump on the opportunity to claim a home. They do not shy away from multiple offer situations, and are not afraid to go over budget. More than 53 percent of first-time millennial buyers make multiple offers on the homes they want, and 37 percent don’t keep to their financial plan. This can prevent future plans to sell if market conditions don’t allow the sale of the home to cover remaining mortgage balances. The typical homeowner still owes 62 percent of their home’s value and 46 percent of millennial sellers won’t sell their home in their desired price range.

The economic landscape may or may not change for the next generation, but they will likely tackle these financial challenges in their own way, the report shows. Generation Z is just now starting to enter the housing market as renters.

“It’s encouraging to see that Generation Z is inheriting the same notion of what home means as their parents and millennial siblings,” says Jeremy Wacksman, chief marketing officer at Zillow Group. “These tech-savvy yet risk-averse renters are bringing their social personalities home, desiring communal amenities geared toward bringing people together.”

While Generation Z buyers embrace homeownership as fundamental to achieving the American Dream, high rent prices may stand in the way when it comes time for them to buy. Thirty-seven percent of renters who didn’t move in the past year state that lack of affordability is the main reason for staying put.

The millennial generation is redefining the way homeownership is approached, and Generation Z will have its own impact on the housing market in a few years, the report shows—especially since they will likely outnumber millennials by nearly 1 million people by 2020.

“As they mature and look toward homeownership, it will be interesting to see how their aspirations and preferences will shape the housing market,” says Wacksman.

by: Liz Dominguez, RISMedia’s associate content editor

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FREE paper-shredding opportunity in Raleigh on Nov 4. They take electronics too!

BBB’s Free Document Shredding & Electronics Recycling Event!   Always good to clear that stuff out!

In conjunction with Coastal Federal Credit Union, BBB Serving Eastern NC is hosting a FREE ‘Secure Your ID Day’ Electronics Recycling & Document Shredding Event on Saturday, November 4 from 8:00 am-12:30 pm at Coastal Federal Headquarters located at 1000 St. Albans Dr. in Raleigh. This event helps consumers protect themselves from identity theft by providing them an opportunity to properly dispose of their confidential documents and recycle their electronics correctly.

Community members are encouraged to take advantage of complimentary document shredding, collection of computers and hard-drives for secure destruction, electric/electronics recycling and identity protection tips.

During the event, local partners Shred-It and GEEP will be on site. At the event, community members will be directed through the parking lot to stations where they will watch their paperwork and devices be safely destroyed and recycled, never having to leave their car while helping protect their own identities.

To date, the semi-annual ‘Secure Your ID’ Day events have safely destroyed nearly 400,000 lbs. of sensitive documents and nearly 100,000 lbs. of electronics.

DATE: Saturday, November 4

TIME: 8:00 am-12:30 pm

LOCATION: Coastal Federal Credit Union Headquarters, 1000 St. Albans Dr., Raleigh

Buying A New House? 5 Things To Check Before Moving In

Buying a new house is an exciting process. For many people, it’s fun to shop around and tour different properties. When you’re serious about purchasing a home, there are a few important parts of the property to check before you move in.

The Neighborhood

You should feel comfortable with the quality of the neighborhood, which will influence the value of your home. Look at the condition of the other homes and check to see if people are loitering at different times of the day. The house should also be in proximity to your job or nearby schools if you have children. Some individuals who don’t have a family may want to purchase a home in a good school district due to the impact that it’ll have on the value of the property.

Storage Space

The storage space that is available in the home influences how much clutter will be left out in the open. Look for plenty of storage space that is available in the bedroom closets or in the kitchen to ensure that you can comfortably fit everything that you own without feeling cramped.

Plumbing System

Run the faucets to inspect the water pressure and ask the owners if the pipes are insulated. Hire professionals to check if the radiators are working and if the hot water tank needs to be replaced soon.

The Roof

The roof is one of the most costly features of the home and protects the interior setting from damage due to environmental elements. Hire a professional roofer to determine the lifespan of the roofing material and if it needs any repairs. The tiles or shingles should be secure on the roof deck, and there shouldn’t be any leaks present.

Sufficient Drainage

Many buyers make the mistake of overlooking the drainage on the property, but the feature can cause issues if they’re not in good shape. Insufficient drainage can lead to severe structural problems in the building.

Although it can be easy to fall in love with a house, there are several areas to check before making an offer to ensure that you won’t run into problems down the road. By taking the time to inspect each part of the property, you can have peace of mind knowing you’re making a good investment.

Housecall:  By Kara Masterson