Gina Farrell

Indepenent Funding Group

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Why Millennial And Gen Z Buyers Are Struggling

July 29, 2022 by Gina Farrell

Why Millennial And Gen Z Buyers Are StrugglingRight now, it is difficult for people to purchase a house. Prices are very high, inventory remains at record low levels, and this is contributing to bidding wars. Even though everyone is having a hard time finding a house, Millennials and Gen Z buyers are struggling more than other people. What are some of the biggest hurdles that these buyers need to overcome? 

A Lack Of Familiarity

One of the first problems that Millennials and Gen Z buyers have to overcome is a tremendous lack of familiarity with the housing market. Many people that fall into this category are buying a house for the first time. They are not familiar with the process of buying a home, and they are far more likely to be overwhelmed by the process. Furthermore, they are often working with a smaller budget, which can make it even harder for them to compete in the current market.

Cash Offers

Because Millennials and Gen Z buyers are purchasing a house for the first time, they do not have the same budget. They often end up purchasing a smaller house. Unfortunately, these are the same houses that people who are downsizing are trying to buy as well. People who are trying to downsize can often make a cash offer for a smaller house, driving Millennials and Gen Z buyers right out of the market. Millennials and Gen Z buyers have a difficult time competing with cash offers.

Student Loan Debt

In addition, Millennials and Gen Z buyers are often carrying a tremendous amount of student loan debt. In some cases, the student loan debt they carry could be more than a mortgage. Banks and credit unions will hesitate to give young prospective buyers a mortgage if they already have a mortgage in the form of student loan debt.

Rising Interest Rates

Unfortunately, rising interest rates are also having an adverse impact on Millennials and Gen Z buyers. Because they are already working with a smaller budget, they will feel the sting of rising interest rates more than other people. This could make it even harder for them to purchase a home.

Looking To The Future

It is possible that more homes could come on the market in the near future. This could create more opportunities for all buyers, making it easier for Millennials and Gen Z buyers to avoid a bidding war and find a home. 

 

Filed Under: Mortgage Tagged With: Gen Z, Millennials, Mortgage

The Majority Of Millennials Plan On Buying A House In The Next Few Years

June 7, 2022 by Gina Farrell

The Majority Of Millennials Plan On Buying A House In The Next Few YearsDuring the past year, the housing market has been on fire. There are not a lot of houses for sale, many people are interested in moving, and there is a rising demand from the people who put off moving during the coronavirus pandemic. Furthermore, Millennial demand is picking up, which will only make the housing market even hotter. Recently, a survey found that approximately two-thirds of people who qualify for Generation Y are thinking about buying a home in the near future. Many of them have improving financial circumstances, and they are looking for a way to build wealth and settle down. 

A Majority Of Millennials Are Now Homeowners

Millennials make up approximately 43 percent of all new home purchases so far this year, which is up from 37 percent in 2021. In addition, Millennials represent approximately 20 percent of the United States population, and they represent the fastest-growing segment of homebuyers in the country. Furthermore, approximately 53 percent of all Millennials now own their own home. Many Millennials have become homeowners by purchasing homes that require updating. As a result, many Millennials are spending money renovating and upgrading their homes.

Has The Housing Market Hit Its Peak?

Even though a lot of Millennials have become homeowners, there are many who are still struggling to afford the cost of a house. With rising mortgage interest rates and home prices, it will only become more difficult for them to do so in the future. Some people are wondering if the housing market has peaked. If a price correction takes place, it could make it easier for Millennials who have not yet purchased a house to do so. Even though it is impossible to predict the future, some financial experts believe that the housing market is headed for a correction.

More Homes Are Needed

One of the reasons why housing prices are so high is that there are not a lot of new houses being built. A shortage of labor and materials has made it difficult for construction companies to keep up with demand. If construction companies are able to start building more houses, it could increase the supply of homes on the market, reducing prices overall.

 

Filed Under: Mortgage Tagged With: Home Ownership, Millennials, Mortgage

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