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5 Gen Z Homebuyer Insights From Bank Of America

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5 Gen Z Homebuyer Insights From Bank Of America

A new survey of U.S. homebuyers sheds some light on the latest trends in the U.S. housing market.

Bank of America recently released its 2019 Spring Homebuyer Insights Report, which includes survey results collected from a nationwide sample of more than 1,900 U.S. adults who currently own a home plan to in the future. Investors may be particularly interested with the findings from the youngest group of potential homebuyers, Gen Z Americans aged 18 to 23.

Here are five findings from the report.

Survey Says...

  1. Gen Z Americans plan to buy a home before age 30. In fact, more than half (52 percent) of those surveyed said they're already saving for a home. Starting a family (55 percent) was the most common reason for buying a home among Gen Z respondents.
  2. Two-thirds (66 percent) of Gen Z homebuyers see saving for the down payment as the largest obstacle to buying a home. More than half (58 percent) say the monthly mortgage payment is a barrier to buying, and 52 percent say lack of knowledge about where to start is an obstacle.
  3. About 61 percent of Gen Z respondents said they are willing to receive financial help in purchasing a home. The most common source of potential aid is parents, with 21 percent of Gen Z homebuyers open to help from mom and dad. Surprisingly, more than half of Gen Z homebuyers plan to pay their parents back for their assistance compared to only 40 percent of millennials.
  4. Almost all (94 percent) of Gen Z homebuyers report they are willing to make major sacrifices to own a home. More than half (51 percent) say they are willing to cut back on extracurricular activities, while 48 percent say they are open to getting a second job to own a home.
  5. Fortunately, Americans who already own a home say the sacrifice is worthwhile in the end. A definitive 93 percent of homeowners say owning a home is worth all the challenges it took to get there. In addition, 84 percent of current homeowners report being satisfied with life overall compared to only 70 percent of prospective homeowners.

Hot Housing Market

Fortunately for U.S. homebuyers, the trade war with China has triggered a sharp decline in U.S. mortgage rates in recent weeks. Most top tier qualified borrowers can now get rate quotes under 4 percent, according to CNBC. That rate is down from peaks of above 5 percent at recently as November.

The SPDR S&P Homebuilders (NYSE: XHB) is up 22 percent year to date.

Related Links:

Another Treasury Department Exit Creates Uncertainty For Investors

The Risk Of Another Housing Market Crash

Posted-In: Bank of AmericaAnalyst Color Analyst Ratings Personal Finance Real Estate Best of Benzinga

 

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