July 19th 2024.
Just like many other Americans, Black Generation Zers dream of owning their own homes. However, the sad reality is that they simply cannot afford it. Recent data has shown that 51% of Black Gen Zers are worried that they may never be able to own a home, compared to 60% of all Gen Z individuals who share this concern. In order to gather more insights on this issue, Clever Real Estate conducted a survey of 1,000 Gen Z adults, out of which 200 respondents were Black individuals.
The majority of Black Gen Zers who do not own a home attribute their situation to expensive housing prices, high interest rates, and the challenge of saving for a down payment. Jaime Dunaway-Seale, the author of the Gen Z Home Buyer Report: 2024 Edition, shared some data with BLACK ENTERPRISE that shed light on the situation of Black Gen Zers. It was revealed that 59% of Black Gen Z non-homeowners have less than $10,000 saved for a home. Unfortunately, with this amount, they can only afford homes that are valued at less than $50,000, assuming they can make a standard 20% down payment.
Furthermore, only 20% of prospective Black Gen Z buyers feel that they can realistically afford a home, compared to 18% of all respondents. However, despite these challenges, 40% of Black Gen Zers still have hopes of owning a home worth over $1 million in the future. On the flip side, around 64% of Black Gen Z homeowners have expressed regrets about their home-buying process, with 37% admitting that they didn't have enough knowledge about it. Interestingly, almost 92% of Black Gen Z non-homeowners still view homeownership as important, but 96% prioritize other goals, such as securing stable employment, building their careers, and starting a family.
Jaime Dunaway-Seale also shared her thoughts on the difficulty of overcoming the affordability barrier. She believes that many Gen Zers will have to make significant life choices in order to save for a home, such as living with their parents for an extended period of time, even after starting their careers, living in smaller apartments, moving to more rural or lower-cost areas, and even living with roommates. For more details and different perspectives on this topic, check out the full report.
It is also worth noting that a majority of both Gen Z and Millennial individuals expect their parents to help them with homeownership. This highlights the importance of intergenerational support and the challenges faced by young adults in achieving this milestone.
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