Gen Z Home Buyers: Making Their Mark in West Michigan's Housing Market

As home prices continue to increase, the trend that we often see, as well as the trend that most people expect to see, is the increase in the ages of those people buying homes. Although on average the age of home buyers nationwide is on the rise as affordability continues to challenge many — there are a huge number of Gen Z outliers who are bucking the trend and writing their own narrative when it comes to real estate.

 

Gen Z Home Buyers at Treadstone

We originally started noticing the trend of Gen Z buyers while helping a client born in 2003 purchase a home. This made him just 21 years old at the time of close. He was buying a $400,000 home, which in Kent County is right around the average purchase price. He had saved up for a 3.5% down payment and had a consistent job. He was not rich and did not come from a wealthy family, and he didn’t buy a home that would need hundreds of thousands of renovations to make it livable. The only outlier in the situation was that he was from Gen Z and found a way to win in a market where many more experienced home buyers couldn’t.

Looking at this situation we were curious to see how many other people like him were in our files. We couldn’t believe what we saw. In a 1 year time period we helped over 200 individuals born after 1999 to buy homes. This was around 10% of our total business — whereas nationally around 3% of totally buyers are Gen Z. The youngest buyer was just 19 years old. Every situation was different — some were house hackers, some used zero down programs, others had co-signers; however, what all of these buyers had in common is that they were all determined to buy a home.

 

What Makes These Gen Z Buyers Different?

Our Gen Z buyers all shared one key advantage — they didn’t have the negative self-limiting thoughts regarding what the real estate market should be that many of their more seasoned counterparts had. They were ok that rates were 6.5% and not 3% because they focused on obtaining a monthly payment that they could afford.

They were ok knowing that home prices had gone up since last year because they looked at home prices historically and rationalized that they would continue to go up on average. They were ok making sacrifices and buying homes that weren’t “forever” or “dream” homes because they understood that they were getting their feet in the door. They understood that as their financial picture evolved and changed, so too would their housing goals.

 

Tips for Gen Z Home Buyers

Whether you are a Gen Z buyer who also wants to buck the trend and get into the housing market, or you are from any generation and understand the above points, here are some tips that can help.

Managing Student Loan Debt
For Gen Z home buyers, and young buyers in general, managing student loan debt is a significant challenge. At Treadstone, we understand the hurdles faced by first-time home buyers. We’re here to help you navigate these challenges and find mortgage solutions tailored to your needs.

Establishing a Stable Credit History
Building and maintaining a good credit history is crucial for young adults buying homes. Your credit score can significantly impact your ability to secure favorable mortgage terms. We recommend regularly monitoring your credit report, paying your bills on time, and keeping credit card balances low. These steps will help you establish a stable credit history, making you a more attractive candidate to lenders in the competitive West Michigan housing market.

Low Down Payment Options
Financial preparedness is a key factor in turning homeownership into a reality. At Treadstone, we offer various low down payment options to assist first-time home buyers. Our resources and programs are designed to provide affordable housing options, ensuring that young home buyers have access to the support they need. From FHA Loans to down payment assistance programs, we are committed to offering mortgage tips for first-time buyers to help you get started.

 

Get Started on your Home Ownership Journey

At Treadstone, we love helping guide first-time home buyers through the process. We’ll walk you through all the steps and set you up to be a successful home owner! Reach out and get started today!