If you’re a millennial or Gen Z young adult, you may be thinking about your goals and dreams for the years ahead. If homeownership is high on your goal list, you are not alone. The dream of homeownership is alive and well with many of your peers pursuing owning a home as well. The 2022 Millennial & Gen Z Borrower Sentiment Report from Maxwell says:

“Many young adults have demonstrated their resolve to embark on the journey toward homeownership soon. More than half of millennials and Gen Zs plan to apply for a mortgage sometime within the next year.”

Here are the reasons why homeownership is high on the list to these generations and some important information millennials and Gen Z will want to know about buying real estate in the current market.

Top Motives For Homeownership

Before you start the process to purchase a home or condo, it’s helpful to know why homeownership is so important to you. The survey mentioned above lists the top reasons why younger millennials and Gen Z are looking to buy a home. Here are the top reasons:

• 95% believe the cost of renting is too high

• 37% plan to use it as an investment property

• 35% think owing a home is an important wealth building tool

• 16% seek the sense of security owning a home provides

If one ore all of these ring true for you, know there are many other financial and non-financial reasons why you may want to buy a home. While your top motivator may be different than that of your friends, they’re all equally valid and worthwhile.

The Obstacles and How To Overcome Them

Your goal of homeownership may come from the heart or driven by financial aspirations (or both), it can still be hard to know where to start. From understanding the homebuying process, to getting pre-approved, and exploring down payment options, it’s a lot to wrap your head around.

The same Maxwell survey mentioned above also reveals some of the challenges for potential buyers. Thankfully, the guidance of a trusted real estate professional can help you overcome both. Here’s a look at two challanges potential homebuyers say they face:

1. Intimidating Mortgage Process

33.37% of potential homebuyers said one of their obstacles was that the mortgage process is confusing or difficult to understand.

An article by OwnUp helps explain why the mortgage process is so challenging for buyers:

“There is a general lack of knowledge about home financing. Mortgages are a complicated topic with no one-size-fits-all answer. It’s difficult to understand the space, let alone determine what the right course of action is based on your unique financial picture.”

You may be tempted to do a quick search online to find instant answers to your questions. Keep in mind, it may not get you the information you need to understand the full picture. Especially when it comes to financial advice, you want advice from a true expert. Having trusted professionals on your side can help you to learn what it takes to achieve your dream of homeownership. Not to mention, an expert can give you advice specific to your situation, not generic advice like you’ll find online. We are happy to refer you to one of our trusted lenders.

2. Cash Savings

45.75% potential homebuyers believe they don’t have enough saved to cover their down payment or closing cost expenses.

What you may not realize, there is a growing number of down payment assistance programs available nationwide to help relieve this pressure. A report from Down Payment Resource says:

“Our Q3 2022 HPI report revealed a 1.6% uptick in the number of homebuyer assistance programs available to help people finance homes, raising the number of programs to 2,309, a net increase of 36 over the previous quarter.”

Additionally, as the housing market cools, buyers are regaining some negotiation power and more sellers are willing to work with buyers to help with closing costs.  Understanding what’s out there and the options available may help you achieve your dream of homeownership faster than you thought possible.

Bottom Line

If you’re serious about becoming a homeowner, know it may be more in reach than you think. Lean on trusted professionals to help you overcome challenges and prioritize your next steps.