Generation Z—the post-millennial generation—is already making a move into homeownership. This generation—which tops out at age 23—consists of those born in 1995 or later.
Nearly 100,000 members of Gen Z have a mortgage, according to data from TransUnion, a credit agency. Their average loan balance is $140,000.
Certainly, Gen Z’s homeownership presence is much smaller compared to older generations. In comparison, 12 million millennials had a mortgage in the fourth quarter of 2017 while Generation X had 24 million mortgages, baby boomers had 27 million, and the silent generation had 5.1 million mortgages, according to TransUnion’s data.
Nevertheless, economists are surprised to see Gen Z’s numbers—at about 99,000 in the fourth quarter—to be as high as they are already.
“The traditional life cycle is to rent, especially for younger consumers who might have student loans,” Robert Dietz, chief economist at the National Association of Home Builders, told MarketWatch. “It’s all the more impressive given the strong housing market. The existing-home inventory is tight, and the cost of single-family homes is rising faster than incomes. Given those conditions, it’s possible even more members of Generation Z could own homes, but the prices might be too high at this moment.”
Source: “Nearly 100,000 Members of Generation Z Own a Home (They’re 23 and Younger),” MarketWatch (March 18, 2018)
