If you belong to a younger generation such as Gen Z, you might be wondering if purchasing a home is a realistic goal for you. The concerns about inflation, increasing home prices, mortgage rates, and other potential obstacles may be weighing heavily on your mind.

Navigating the current housing market can be tough for first-time homebuyers, but with the right professionals by your side, it is definitely possible.

If you're looking for helpful advice, consider these tips from a pro.

1. Explore Your Options for a Down Payment

If a down payment is your main obstacle, various options can help boost your savings. With over 2,000 down payment assistance programs available, homeownership becomes more attainable. Additionally, 49% of Gen Z homebuyers received financial assistance from loved ones for their down payment, as reported by LendingTree.

When it comes to putting money down on a property, you may not always need to shell out 20% upfront, unless explicitly required by your loan type or lender. It's crucial to collaborate with a reliable mortgage expert to delve into the choices available, determine the exact amount you'll require, and understand any regulations regarding receiving financial gifts from family or friends.

2. Live with Loved Ones To Boost Your Savings

Some Gen Z buyers are opting to leave rentals and return to living with friends or family, aiming to reduce housing expenses and accelerate savings growth, per Bankrate.

“. . . many have opted to stop renting and live with family in order to boost their savings. Thirty percent of Gen Z homebuyers move directly from their family member’s home to a home of their own, according to NAR.”
— Bankrate

3. Cast a Broad Net for Your Search

When you have saved up enough, a professional can assist you in navigating your search effectively. Given the current low supply of homes for sale and tight affordability, they can provide you with strategies and options that you may not have thought of to broaden your choices.

Considering a rural or suburban area is often more budget-friendly compared to an urban setting. Although cities are vibrant, the lower cost of living may make suburbs more appealing. Opting for smaller homes, condos, or townhouses provides additional entry points into the real estate market, as highlighted by Colby Stout, Research Analyst at Bright

“Being flexible on the types of home (e.g., a condo or townhome versus a single-family home) and exploring more affordable neighborhoods is important for first-time buyers.”
— Colby Stout, Research Analyst at Bright MLS

4. Take a Close Look at Your Wants and Needs

Absolutely! A real estate agent can assist you in considering your essential requirements and preferences. Keep in mind that your initial home doesn't necessarily need to be your permanent residence. The key is to begin accumulating equity. Making some concessions might be beneficial if you're looking to purchase. As Chase recommends, getting your foot in the door is the first

“An open-minded approach to house-hunting may be one way for Gen Z homebuyers to maintain some edge. This could mean buying in areas that are less expensive. Differentiating needs vs. wants may help in this area as well.”
— Chase

When working with an agent, they can assist you in ranking your desired home features and locating properties that meet those high-priority criteria. Additionally, they can provide insights into how equity can be advantageous in the future, enabling you to eventually transition into your ideal home.

Bottom Line

Real estate professionals offer valuable insights on effective buying strategies. Seek their guidance for tips and advice during your homebuying journey. Remember, with their support, achieving your real estate goals is within reach!

“The path to homeownership may not be a straightforward one for Gen Z, but it’s undoubtedly within reach. By adopting the right strategies, like exploring down payment assistance programs and sharing living costs with relatives, you can bring your dream of owning a home closer to reality.”
— Directors Mortgage

Let's work together to help you establish a plan for long-term prosperity.