Gen Zs and the property market

Older Gen Zs (born between the mid-1990s and early 2000s) are beginning to enter the property market in increasing numbers, with a large percentage indicating that they believe homeownership to be a “high priority”.

This is according to a 2022 survey, which found that 72% of the Gen Zs surveyed are expected to buy a home in the future and that 43% of these respondents are expected to do so in the next five years. To add to this, CoreLogic estimates that Gen Zs made up 9% of all first-time homebuyer applications in the US in 2022.

While affordability remains a key challenge for Gen Z homebuyers, they are continuing to prioritise saving in the hopes of making their homeownership dream a reality.

While many Millennials opt to rent for the flexibility this option offers, some aspirant Gen Zs have their sights firmly set on buying a home. Many would-be buyers recognise the strategic benefits of investing in property as a wealth creation strategy. If they’re buying a home to live in, they’re thinking about the long-term appreciation of a tangible asset and the profit they will make when it comes time to sell. Other young homebuyers are choosing to purchase a rental property that will generate additional income while they continue living at home to maximise their savings (buy-to-let properties).

Overcoming affordability challenges

Compared to previous generations, Gen Z is delaying homeownership, with many choosing to live with their family during their first few years of employment to save up enough money to purchase their first property. The rising cost of living in South Africa and the multiple recent interest rate hikes have also resulted in many choosing to rent rather than buy for the foreseeable future as costs associated with buying a home remain a barrier

The original article can be found here