It’s no secret that the housing market is suffering right now. Prices are high and inventory is low, which has made it difficult for buyers of all ages to find a home they love. However, according to recent studyMillennials and Generation Z buyers feel the pain of the housing market more than any other age group, with many aborting in tears in the process. So what caused this conflict? Let’s take a closer look.
First time home buyers
For starters, Millennials and Generation Z buyers are more likely to be first-time homebuyers than any other age group. This means that they are less familiar with the process of buying a home and more likely to be overwhelmed by it. Additionally, they are also more likely to operate on a smaller budget than older buyers. Due to the high prices, this can make it difficult to find a home that meets all their needs.
high interest rates
In addition to higher prices, millennials and Generation Z buyers are also competing with higher interest rates. According to Forbes, as of June 3, average interest rate It was 5.43%. This makes it difficult for those who are already struggling to save for the down payment. With prices expected to continue to rise in the coming months, it will become increasingly difficult for young buyers to purchase a home.
student loan debt
Moreover, Millennials and Generation Z buyers are also more likely to bear the burden of student loan debt. This can make it difficult to save up for a down payment or qualify for a mortgage. And even if they are able to save and qualify, the amount of their monthly payments may be too high for them to comfortably afford.
Good news looms
While things may look bleak for millennials and Generation Z buyers at the moment, there is some good news on the horizon. According to Realtor.com, the number of homes on the market is expected to rise In the next few months, which will help lower prices. In addition, interest rates are expected to stabilize after rising for several months. This will provide buyers with a little relief while they continue to search for their perfect home.
If you’re a Millenial or Gen Z customer and are currently looking for a home, don’t worry. There is hope on the horizon. Keep your eyes peeled for new listings and be prepared to act quickly when you find a home you love. With a little patience and persistence, you will be able to find the perfect place to call you.
Happy house hunting!
Do you have any advice for millennials and Generation Z buyers who are struggling to find a home? Post them in the next comment!
4 ways to save money by canning
5 things I will never do to save money on rent
Weekly Summary: Housing Market Transformation as Mortgage Rates Rise
Go back to what you love! Dollardig.com It is the most reliable cashback site on the web. All you have to do is sign up, click, shop and get your full cash back!
Tamilla MacDonald has worked as a financial advisor to the Army for 13 years. She has taught personal finance classes in every subject from credit, to life insurance, as well as all other aspects of financial management. Ms. MacDonald is an AFCPE certified financial advisor who has helped her clients achieve their short and long term financial goals.