Move Over Millennials, Gen Z is Already Buying Homes

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Who’s afraid of growing up?  Apparently not Generation Z.  The post-Millennial crop of kids, those born
in 1995 and later, are already moving into homeownership.

Maria
Lamagna, writing for MarketWatch says just shy of 100,000 members of Gen Z,
whose ages top out at 23, have a mortgage. Their average loan balance is
$140,000.

Millennials
have been notorious late bloomers, lagging earlier generations in marrying,
starting families, and buying homes. For Gen Z it is very early in the
traditional homebuying cycle, but TransUnion reports they already held 99,000 mortgages
in the 4th quarter of 2017. This was dwarfed of course by the 12 million
Millennials, but members of the much smaller Generation X had 24 million mortgages,
as did nearly 27 million baby boomers and 5.1 million members of the Silent
Generation.

Lamagna quotes Rob Dietz,
chief economist of the National Association of Home Builders who said he was a
little surprised to see the ownership numbers for Gen Z as large as they are.  “The traditional life cycle is to rent,
especially for younger consumers who might have student loans,” he said.

Dietz continued, “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,” he said.

They might be young,
but these buyers seem to take homeownership seriously. Just 1.2 percent are more
than 60 days past due on their mortgages while the average for Millennials is
1.6 percent.  Mortgages held by Generation
Xers are running 2.3 percent non-current and baby boomers have a 60-day
delinquency rate of 1.6 percent.



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