Gen Zers increasingly fear that homeownership is a hopeless dream

With mortgage rates rising and home prices high, Gen Z worries that they will not be able to score a home in their lifetime.

Gen Z’s outlook on homeownership has darkened since 2019, according to mortgage buyer Freddie Mac.
Primary obstacles include student loan debt, down payments and lack of job security.
This is exacerbated by high mortgage rates and a dearth of housing supply.

For a growing number in Gen Z, the last few years have quashed all hopes of ever being able to afford a home. 

About 34% of the youngest generational cohort — ages 14 to 25 — don’t think they’ll ever be able to afford their own house, according to a Freddie Mac study released this month. That’s up from 27% who felt that way the last time the survey was done in 2019, according to the report. 

Some of these young adults are taking to social media to express their anxiety and frustration, and to ask for help. Facebook user JJ Fay, who said she was 23, explained that she owed money — including student loan debt — but hoped that there was still way to buy a home despite the sorry state of her credit.

“What is the best way to raise my credit?” she asked with a screenshot of a credit score of 556, which is considered very poor, according to Insider’s personal finance team. Fay did not respond to Insider’s request for comment.

Fay’s not alone. In fact, two of the reasons she was down on the prospect of homeownership came up in the study.

The weight of student debt was among the top complaints fielded by Freddie Mac. Of the 1,749 that responded to Freddie Mac’s survey, 22% said their obligations to repaying college and other academic loans were the reasons it was so hard to buy a home. 

Some …read more

Source:: Businessinsider

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