Generation Z

writes the Senior Economist for LendingTree

Gen Z and millennials are more willing to take a higher mortgage rate in order to buy a home than Gen X and baby boomers, the ServiceLink report found.

While several communities offer monetary incentives to attract new residents, some are making overtures with down payment and other types of assistance aimed at building up their local housing markets.

Gen Z homebuyers make up a 21.26% share of purchase requests in the top five metropolitan areas.

The bottom five metropolitan areas have an average share of mortgage purchase requests from Gen Z homebuyers of 9.29%.

Younger customers want personalized engagement, including in their music playlists, experts said at American Banker's recent Digital Banking conference.

While paying off existing loans is their most immediate priority, buying a house is the No. 1 aim within five-to-10 years, a FinLocker survey found.

Mortgage companies are using AI and other tools to reach those who expect nothing less than a super-personalized and interactive experience from their online services.

But a large gap exists in the degree of energy and investment depository institutions put in their customer acquisition efforts versus nonbanks, according to Arizent research.

Just under half of respondents in a recent mortgage study said cost of living increases have impacted their ability to make a home loan payment in the past six months.

But the share of homes purchased by those under age 30 has fallen steadily after peaking in 2020 as prices accelerated.

This group is decidedly less ambivalent about the housing market — and saving and investing — than their millennial brothers and sisters.

As Gen Z and millennials become homebuyers, companies are adding and upgrading their apps in the hopes of gaining a greater market share.

A Realtor.com survey of consumers aged 18 to 25 found that 45% share are already saving for a home.

The digital bank is on a larger mission to attract younger customers. It's inserting itself into the popular video game in the hope that game players will learn about its products and have fun at the same time.

Whether low rates will continue to outweigh health and employment concerns for millennials and Generation Z remains to be seen.

Borrower education stands as a barrier to homeownership for younger consumers and Freddie Mac is trying to change that.

Mortgage debt climbed to a new peak of $9.4 trillion in the second quarter and the distribution across the U.S. varies greatly.

Mortgage activity fell at the start of the year, but lower mortgage rates are boosting refinance volume, and Generation Z is starting to creep into the housing market, according to TransUnion.

Approximately two-thirds of millennial and Gen-Z renters expect to purchase a home in the next five years, although their aspirations for homeownership slipped from a year ago, a Pulsenomics survey found.