How Younger Homebuyers Can Turn Homeownership Dreams into Reality

If you belong to a younger generation such as Gen Z, you might wonder if buying a home is within your reach, especially given the challenges of inflation, escalating home prices, and rising mortgage rates.

Despite the tough market conditions for first-time buyers, achieving homeownership is possible with the right professional guidance.

Here are some expert tips to help you on your journey:

Investigate Down Payment Options

The initial down payment is often the biggest obstacle. Fortunately, over 2,000 down payment assistance programs exist to make buying a home more accessible. Additionally, 49% of Gen Z homebuyers received financial help from family for their down payments, according to LendingTree.

You might not need a 20% down payment (depending on your loan type or lender). Collaborate with a trusted mortgage professional, like Mark Scocco at Crown Home Mortgage, to explore your options, determine the necessary amount, and understand any rules regarding financial gifts from family.

Save by Living with Family or Friends

Many Gen Z buyers are opting out of renting and moving back with family or friends to save on housing costs and accelerate their savings. As Bankrate notes:

“. . . 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.”

Expand Your Search Horizons

Once you’ve saved enough, a professional can guide you in widening your home search. With limited housing supply and affordability concerns, they can suggest strategies and alternatives you might not have considered.

For instance, rural or suburban areas often offer more affordable housing compared to urban centers. Additionally, considering smaller homes, condos, or townhouses can provide more entry points into the market. Colby Stout, Research Analyst at Bright MLS, emphasizes the importance of flexibility in home types and exploring cost-effective neighborhoods for first-time buyers:

“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.”

Evaluate Your Needs and Wants

Finally, an agent can help you distinguish between essential features and desirable extras in a home. Your first home doesn’t need to be your forever home; it’s about starting to build equity. Being open to compromises can be beneficial, as suggested by Chase:

“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.”

An agent can assist in prioritizing your home feature list, finding properties that meet your top criteria, and explaining how building equity can lead to your dream home in the future.

Bottom Line

Real estate experts know what works for buyers like you. Rely on their advice and tips throughout your journey. As Directors Mortgage states:

“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.”

Connect with Countryside Homes NJ and RE/MAX Select to set yourself up for long-term success in homeownership.

Client Testimonials for Countryside Homes NJ

At Countryside Homes NJ and RE/MAX Select, we pride ourselves on delivering exceptional service to our clients. But don’t just take our word for it—read what our satisfied customers have to say. From first-time homebuyers to seasoned real estate investors and new home builders, our clients appreciate our dedication, expertise, and commitment to their success. Here are some of their stories.

David R. New Homeowner

Collaborating with Keith LaBrunda and Heather Montalbano from Countryside Homes NJ and RE/MAX Select streamlined the home-buying process for me. They were attentive to my needs and preferences, ensuring they understood exactly what I was seeking in a home and what was within my financial comfort zone. Keith and Heather provided invaluable assistance during the offer stage, sharing insightful details that enabled me to place a successful bid on my desired property. They recommended associates to assist me with securing a mortgage, conducting home inspections, and acquiring homeowner's insurance. Post-purchase, they continued to be a resource, suggesting local companies to contact for internet, water, waste management, oil, and other essential services. The experience of purchasing a home with Keith LaBrunda and Heather Montalbano was seamless and enjoyable.

Rachel and Andre First Time Homebuyer

As first-time homebuyers, the process of finding and purchasing a home felt daunting. But from the moment we reached out to Heather and Keith at Countryside Homes NJ and RE/MAX Select, our worries were put to rest. Their team was incredibly patient, answering all our questions and guiding us through every step. They took the time to understand our needs and preferences, ensuring that we found the perfect home in a neighborhood we love. We were especially impressed by their vast knowledge of the local market and their commitment to ensuring we got the best deal possible. We can't thank them enough for making our dream of homeownership a reality. If you're in the market for a new home, we highly recommend Heather and Keith at Countryside Homes NJ and RE/MAX Select. They truly go above and beyond for their clients!

Prestia Family New Homeowners

From the moment we began our home search, Heather at Countryside Homes NJ and RE/MAX Select stood out as the epitome of professionalism and dedication. Her team's in-depth knowledge of the Rockaway Borough area and their unwavering commitment to our needs made our home buying journey not only smooth but truly enjoyable. As new homeowners in Rockaway Borough, NJ, we can confidently say that choosing Heather at Countryside Homes NJ and RE/MAX Select was the best decision we made. Her expertise, patience, and genuine care for our family's needs transformed what could have been a stressful process into a memorable and joyous occasion. We are beyond grateful for her support and would highly recommend her and her team to anyone looking to find their dream home. Thank you for turning our dreams into reality!