Generation Z has entered the housing market in surprising numbers. Credit agency Transunion says that more than 99,000 of individuals born in 1995 and after have mortgages.
Homebuyers in this cohort are targeting areas like Ocala, Florida, Kansas City, Nashville, known for affordable housing markets, and San Jose, California, an expensive housing market, says Daren Blomquist, a senior vice president at Attom Data Solutions. MarketWatch reports that Generation Z are further removed from the housing crisis, and aging into homebuying at a time when rates are low, and rent prices are high.
Their average mortgage balance: $140,000. “I’m a little surprised to see the numbers as large as they are,” said Rob Dietz, chief economist and senior vice president for economics and housing policy for the National Association of Home Builders. “The traditional life cycle is to rent, especially for younger consumers who might have student loans.” It’s all the more impressive given the strong housing market. The existing home inventory is “tight,” Dietz said.