July 19, 2024
Stable employment and building a career are among goals Black Gen Zers prioritize over home ownership.
Like many Americans, Black Generation Zers would like to own homes, but the problem remains that they plainly cannot afford them.
In fact, new data shows that 51% of Black Gen Zers worry they might never own a home, compared with 60% of Gen Z entirely who felt that way. Clever Real Estate surveyed 1,000 Gen Z adults to get their views on buying and owning a home. Some 200 of the respondents—20%—included in the study were Black.
Almost all Black Gen Zers who don’t own a home cite expensive homes (38%), high interest rates (29%), and saving for a down payment (27%) as top common barriers for homeownership.
Jaime Dunaway-Seale, author of Gen Z Home Buyer Report: 2024 Edition, provided BLACK ENTERPRISE some data on Black Gen Z. It showed 59% of Black Gen Z non-homeowners have under $10,000 saved for a home. With that amount put toward a standard 20% down payment, they could only afford homes worth less than $50,000.
In addition, just 20% of prospective Black Gen Z buyers feel they can afford a home, versus 18% of those surveyed overall. Still, 40% of Black Gen Z eventually expect to own a home worth over $1 million.
Roughly 64% of Black Gen Z homeowners express regrets, with 37% reporting they didn’t have enough knowledge about the home-buying process. Nearly 92% of Black Gen Z non-homeowners say owning a home is important. However, 96% prioritize other goals over homeownership. Those goals include stable employment (47%), building a career (49%), and starting a family (37%).
Dunaway-Seale reflected on how overcoming the affordability barrier is challenging.
“Many Gen Zers will have to consider radical life choices to begin to save for a home, such as living with their parents for a long period even after starting their career, living in small apartments, living in more rural and lower cost of living areas, and living with roommates.”
Check out more details and perspectives from the report here.
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