Millennial & Gen Z Home Buying: Debunking Myths About The Youngest Homebuyers

Are you a millennial or Gen Z-er thinking about buying your first home? You're not alone! Many people in these age groups are starting to consider homeownership, but there are a lot of myths out there that might be holding you back from taking the plunge. In this blog post, we'll debunk some of the most common myths about home buying for millennials and Gen Z-ers. Whether you're worried about your credit score, income level, or feeling overwhelmed by the process, we've got you covered. So, let's get started and clear up some of those home-buying myths once and for all!

Millennial Homebuying Myths

Millennials Are the Minority of Home Buyers

One of the most damaging myths surrounding millennials and home buying is that they're too young to be serious home buyers and don't represent a significant margin of the market. However, this couldn't be further from the truth. In fact, millennials are one of the largest groups of home buyers in the United States today, making up 43% of the market, according to a recent report by the National Association of Realtors. Millenials' birth years range from 1981 to 1997, meaning most of them are established in their careers and looking to take the next step. 

Millennials Don't Want to Own

It's true that, overall, millennials are renting a property in staggering numbers in North America. However, it may not be for the reasons people think. Most millennials would prefer buying a home instead of renting. However, with the economy in its current state, millennials need to be practical about their living arrangements. It's far easier to break a lease if they lose a job (or get a more lucrative career opportunity) than it is to sell a property.

Millennials Aren't Buying Homes

This myth very much depends on what area a person lives in. In some areas of Canada, millennial home ownership is actually on the rise. And what's more, millennials are more willing to live in smaller spaces to accommodate population growth in larger cities. Millennials today are, by and large, less concerned with material wealth than their older counterparts. This fact is largely due to the transient lifestyle referenced above, but it's worth noting when trying to predict which real estate will be in demand and why.

Millennials Do Things Differently

Despite the burgeoning technology and interesting fashion choices, millennials are more traditional than many people believe.

There's a common myth out there that millennial homebuyers don't use real estate agents when buying homes. While it's true that many millennials are tech-savvy and like to do their research online, that doesn't mean they're bypassing real estate agents altogether.

In fact, studies have shown that the vast majority of millennial home buyers almost always get help from real estate agents. Real estate agents have a wealth of knowledge and experience that can be invaluable when navigating the complex process of buying a home, and millennials are recognizing that. Plus, working with an agent costs the buyer nothing since the seller typically pays the commission. So, if you're a millennial thinking about buying a home, don't be afraid to enlist the help of a real estate agent. They can be a valuable resource in your home-buying journey.

Gen Z Home Buying Myths

Gen Z Has Too Much Student Loan Debt

How many times have you heard that Gen Z will have too much student loan debt to afford homes? Undeniably, their student loans are pricier than previous generations, but this cohort is highly motivated to become the biggest market for new home buyers. 

People often overlook the fact that paying off student loan debt improves your credit and make you a more favourable candidate for mortgage applications. Lenders take into account a borrower's debt-to-income ratio, which looks at how much debt you have relative to your income. So, if you have a steady income and your debt-to-income ratio is within a lender's acceptable range, you may still be able to qualify for a mortgage. Additionally, there are programs available for first-time homebuyers that can help with down payments and closing costs, which can make homeownership more affordable. 

Gen Z Is Too Young to Buy Real Estate

While Gen Z-ers may be on the younger side, many are already in their early 20s and have steady jobs and income. Plus, many are starting families and looking for a place to call their own. It's also worth noting that the age of first-time homebuyers has been steadily decreasing in recent years, with more and more young people entering the housing market.

Of course, buying a home is a big decision and not something that should be rushed into, but age shouldn't be a barrier. As long as you're financially ready and able to take on the responsibilities of homeownership, there's no reason why you can't buy a home at a young age.

Millennials & Gen Z: The Next Great Generations of Home Buyers

There are a lot of myths out there about millennials and Gen Z-ers and their ability to buy homes. But the reality is that these age groups are increasingly entering the housing market and are just as capable of buying a home as any other age group. Whether it's the myth that millennials don't use real estate agents or that Gen Z-ers are too young or burdened with student debt to buy a home, we hope this blog post has helped debunk some of these misconceptions. The truth is that with careful planning, research, and the right support, anyone can achieve the dream of homeownership, regardless of age or circumstances.