Think Generation Z isn’t in the market for their first homes? Think again. Many Gen Z — people born between 1997 and 2012 — are not only old enough to buy homes they are doing so sooner than Millennials and Gen X were able to at the same age. Part of the reason for that is a slightly unconventional approach to homebuying. What’s going on with this cohort of young buyers? Here’s a rundown of how Gen Z buys homes differently:
Why Can They Buy?
In many ways, Gen Z has been lucky. The oldest members of their generation came of age when interest rates were low. The job market was less tight, making it easier for them to get good-paying jobs. Covid sent many of them back to their childhood homes where they were able to live rent-free and save money. Four years later, many are still living with relatives as they save up enough money to purchase their first homes.
Gen Z also can be more flexible when it comes to their jobs. They can move to more affordable areas where home prices are lower because more and more companies are offering remote work options.
What Are They Looking For?
Gen Z wants stability. Renting does not provide the stability that a fixed-rate mortgage does. Knowing how much housing will cost you allows you to budget for the future in a way that uncertainty about rent increases does not which helps selling homes to Gen Z.
How Are They Doing It?
A big obstacle for many potential homeowners is the down payment. Most homebuyers have been told that they need to put 20 percent of the cost of the home down. That is a significant outlay of cash. Gen Z is finding ways around this. Many Gen Z parents are giving Gen Z buyers the money for the down payment. Gen Z is also taking advantage of FHA or VA loans that do not require 20 percent down payments. Many builders in master-planned communities offer incentives such as zero down payments or rate buydowns that significantly improve Gen Z’s ability to afford a new home and how Gen Z buys homes differently.
How Do They Approach Homebuying?
Gen Z is very comfortable using technology —they prefer it. Most will do their research online, looking at homes for sale via websites such as Zillow or taking virtual model home tours in master-planned communities. As they do not trust large corporations, they rely on referrals from friends, family and social media to narrow down searches.
Another difference is that Gen Z is more likely to “house hack” than previous generations. House hacking is the practice of renting out a portion of your home or an entire property for an additional stream of income. Gen Z will often factor in the fact that they are planning to rent out a room in their new home to offset the cost of their monthly mortgage payments.
Mantua is a Great Place for Gen Z
Mantua is a great place for Gen Z to set down roots. Located in Van Alstyne, just north of Dallas along U.S. Highway 75, Mantua is an affordable community offering small-town vibes near big-city amenities. Those who occasionally have to travel for business will be happy to know that the community is less than 50 miles from DFW International Airport.
Mantua is a place where you get more for your money than just a home. You get a community full of friendly neighbors and great amenities. The Veranda Community Center offers resort-style living with a beautiful pool, splash pad for young children, indoor and outdoor gathering spots and more. There are also bike-and-hike trails to travel and parks to play in. More amenities will be online soon, including a park for pooches. The Commons will offer sports courts. The Trail House Welcome Center will soon be the first stop for homebuyers interested in learning what makes Mantua special.
Right now, builders David Weekley Homes, Highland Homes, Perry Homes and Risland Homes have beautiful move-in ready homes available. They also offer a range of floor plans you can semi-customize to make your home as unique as you are. To learn more, make an appointment to tour our stunning models today!
