- General Zires They have difficulty purchasing a house due to the increasing costs of home ownership-and many of them are drowned in debts related to student loans, credit cards and paid purchases. Only 3 % of the United States home owners are GEN Z, according to the National Society for Real Estate Justice.
The purchase of a home for a long time was the American dream. It is a sign of financial stability and is often considered one of the final investments that one can make.
But finding that the fence of the white environment is far-reaching for most General Zires, who are now concerned about paying personal debts-which makes this generation fails to ownership of the house, according to what I mentioned. RealTor.com.
Only young people want to pay their debts, according to a report By payments-Data Pymnts Intelligence. On average, General Zires holds more than $ 94,000 of personal debts, a Newsweek reconnaissance Offers, which exceed the millennium generation of about $ 60,000 in debt and general x With about $ 53,000 in debt. Part of the conflict comes in the amount of what Gen Zers pay for rent every month, leaving a little to provide an introduction batch.
About a third of General Zires says they are financially underwater due to inflation, high interest rates, and stagnant wages, Natalia BrownThe largest compliance and consumer affairs with Reducing national debtHe said luck.
“Many Gen Zers enter adulthood with a heavy financial burden –Student loansBrown said that the debts of credit cards and the increasing living costs.
“Add in Credit cardsand Medical billsAnd Buying advanced services and materialThe result is a dangerous snowball effect. “
The real cost of home ownership
According to The National Association of Real Estate Judass (NAR), General Zires constitutes only 3 % of all home buyers. This may not be surprising, given that the mortgage rates are still relatively high, approaching 7 %.
During, American homes excelled over wagesAccording to A joint center for housing studies at Harvard University. The current medium home price in the United States is more than $ 403,000, NAR Data Offers, while the Social Security Administration Reports The national wage index is about $ 66,600.
Assuming the real estate mortgage rate today, paying 20 %, and the average national salary, it will be that Essentially impossible To buy a medium price home without spending more than a third of your monthly income on housing.
Nikki BozhampCo -mediator with Sotheby’s International Realty In New York City, high interest rates said of the main preventive factors of the Gen Zers commander from the purchase of real estate.
“The cost of homes is much higher than it was for previous generations, and you You may not see many novice homes He told Bozhamb that he would be built or available luck. “Add to the students’ debts, and in general, I noticed that as a result, they had a much higher debt than Gen X in that era. “
Advice for General Zires who want to have a house
while Escape debts You can feel magic and home ownership, there are ways to organize how you pay your debts.
Financial advisors suggest a high interest debt payment such as credit cards first, because many of them carry a rate exceeding 25 %, which may make almost impossible to pay it. It may be the easiest budget around other debts such as student loans and car payments, Elizabeth ShalvirFinancial advisor with Armstrong, Fleming and MoreHe said luckAdding a good base of the thumb is that the total monthly debt payments should be less than 36 % of the total monthly income.
“Look at your current debts and select the amount of the room, if any, there to pay the mortgage,” said Silderf. “If your debt levels are already high, it should pay your only focus.”
The consultants also recommended that Gen Z avoid purchase services now, and paid payment services as they can lead to “Repeated small purchasing trap This adds what is up, ”Brown said.
Beaucamp also states that Gen Zers there are several other ways to storm the housing market regardless of traditional ownership.
“Real estate has many different exchange, including joint ownership, Fractional ownership This may be interesting for those looking to start obtaining a property ownership ladder. “
This story was originally shown on Fortune.com
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