Shattering deadlines, plummeting structures with overpriced deals, pressure to spend money they don’t have: Millennial and Gen Z homebuyers in Metro Detroit have entered a residential real estate market like no other, still say the pursuit of a single-family home calling their own has kept them going despite the challenges.
Realtors who work with these newbies to home buying say the main part of their job over the past 16 months of an intensely competitive market has been educating about the process. While Millennials and Gen Z were keen to buy – in fact, surveys show many had larger down payments due to the pandemic – encouraging stamina and staying on a budget was the more prudent route, according to real estate agents and brokers.
“I tell them to be patient – don’t be discouraged if you can’t find what you like when you start looking,” said Kyle Lang, an agent for RE / MAX Dream Properties. “Houses are like buses. There is always one coming.”
According to Zillow, Millennials are the largest generational group of home buyers and, as a result, have a huge impact on the market. Millennials are aging in their peak home-buying years, Zillow notes, and Gen Z is not far behind.
About three in five millennials and Gen Z plan to use the money saved during the pandemic for a down payment on a home, according to a recent Zillow survey, showing that even in an unprecedented global pandemic, homeownership “is a priority and an aspiration among those sometimes called the ‘rent generation’,” the survey showed.
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Of the more than 1,200 young adults surveyed by Zillow, 83% said they had saved money in at least one expense category during the pandemic. When asked what they plan to do with the extra money saved during this time, the majority (64%) said they plan to use it for daily living expenses, followed by 59 % said they plan to use their savings for a down payment. on a house.