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Yahoo
2 days ago
- Business
- Yahoo
Buying a House Is the Second Most Important Financial Goal for Gen Z—the No. 1 Goal Is Why It's Out Of Reach
Gen Z is falling behind on the path to homeownership. In 2025, they made up just 3% of all homebuyers, according to the National Association of Realtors®, the smallest share of any generation and a sharp contrast to baby boomers, who accounted for 42% of buyers. While high interest rates and higher home prices have made it harder for young adults to break into the market, new research suggests another force might be working against Gen Z: how they manage their money. According to PYMNTS Intelligence, a payments data provider, despite valuing homeownership, Gen Z's top financial goal isn't buying a home. It's paying off debt. The average Gen Z adult carries an average of $94,101 in personal debt, with credit card debt being the most common. With so much of their income tied up in monthly payments, even high earners in this generation are struggling to save for a down payment or qualify for a mortgage. Debt, not disinterest, might be the real reason Gen Z is falling behind—at least for now. 'Though Gen Z Americans may dream of homeownership, still-high housing costs mean that stepping onto the property ladder may not be possible at this point in time,' says Hannah Jones, senior economic research analyst at 'By prioritizing paying off debt, Gen Z prospective buyers are setting themselves up for success when homeownership does become more feasible.' PYMNTS Intelligence identifies two key money management mindsets: Planners, who proactively save and pay off credit cards Reactors, who handle bills as they come and often rely on credit or loans Gen Z overwhelmingly falls into the latter group. A striking 73% of Gen Zers are classified as reactors, making them more likely to live paycheck to paycheck, carry high-interest debt, and struggle to build savings. That reactive approach can seriously undermine major financial goals, like buying a home, because it prioritizes short-term survival over long-term stability. Even more surprising, the reactor mindset is gaining ground among high earners across generations. Since February 2024, the share of six-figure earners who identify as planners has dropped by 25%. Now, 52% of top earners are reactors, a shift that underscores how widespread short-term financial thinking has become, even among those typically viewed as having the means to plan ahead. Unlike baby boomers, 54% of whom are planners focused on long-term stability, Gen Z is chasing growth. According to the PYMNTS report: Just 7.7% of Gen Z cite retirement saving as a top financial priority, compared with 22.1% of baby boomers. Nearly 7% of Gen Z say their No. 1 goal is starting a business, making them eight times more likely than boomers to focus on entrepreneurship. 'Gen Z Americans have time on their side and may be more willing to take big swings financially, while older generations are more risk-averse,' says Jones. While starting a business can lead to long-term wealth, it typically comes with short-term financial instability, exactly what makes it harder to qualify for a mortgage or build up a down payment. Irregular income, high credit utilization, and limited savings make it much harder to qualify for a mortgage under traditional lending models. Even high-earning Gen Z entrepreneurs might struggle to demonstrate the consistent income or financial reserves lenders expect. This risk-oriented mindset might be a reaction to the current conditions of the housing market. Buyers now need to earn 70% more than they did just six years ago to buy a home, to say nothing of the difference between buying a house now than in the 1960s and '70s, when many baby boomers bought their first homes. These conditions have made many in Gen Z feel that shooting for the moon in business is a more realistic goal than saving for that white picket fence. Homeownership hasn't fallen off Gen Z's radar, but it's taking a back seat to paying off existing debt. Buying a house ranks as this generation's second most important financial goal, with 14.1% of Gen Zers ranking it as a priority. But deprioritizing homeownership, even temporarily, can come at a long-term cost. In a market where prices keep climbing, every year spent focusing elsewhere can make the eventual buy-in more expensive. And because lenders heavily weigh savings, credit usage, and income consistency, Gen Z's current financial behaviors—like revolving debt and low reserves—can delay homeownership even further, regardless of intent or income. In other words, Gen Z still wants to own, but the reactive financial path they're following makes it harder to get there. Without a shift in priorities, many might find themselves stuck in a cycle where the dream of owning a home never quite catches up to their ambition. To bridge the gap between ambition and ownership, Gen Z might need to rethink how they prioritize and manage their money. The good news is that paying off debt, Gen Z's top financial priority, will eventually help them buy a house by lowering their debt-to-income ratio. The area where they can make the biggest changes, though, is in moving from a reactive mindset to a planning mindset. Here's how they can get started: Automate savings to gradually build up a down payment. Track spending patterns to identify areas to cut back. Use credit strategically, aiming to pay in full each month. Pursue both goals in parallel—treat debt repayment as a priority, but not at the cost of building a safety net to support future homeownership. Gen Z hasn't turned away from homeownership, but when the top priority involves risk or volatility, it can make the second one harder to reach. With the right habits and tools, Gen Z can build both the freedom to pursue big dreams and the foundation to one day own a piece of them. What Happens If I Stop Paying My Mortgage? Giving or Receiving a Down Payment Gift? Here Are the Tax Consequences How To Get a Mortgage With Bad Credit (Yes, You Can)
New York Post
4 days ago
- Business
- New York Post
Gen Z Wants To Own Homes—So Why Is It Still Out of Reach for Most?
Gen Z is falling behind on the path to homeownership. In 2025, they made up just 3% of all homebuyers, according to the National Association of Realtors®, the smallest share of any generation and a sharp contrast to baby boomers, who accounted for 42% of buyers. While high interest rates and higher home prices have made it harder for young adults to break into the market, new research suggests another force might be working against Gen Z: how they manage their money. Advertisement According to PYMNTS Intelligence, a payments data provider, despite valuing homeownership, Gen Z's top financial goal isn't buying a home. It's paying off debt. The average Gen Z adult carries an average of $94,101 in personal debt, with credit card debt being the most common. With so much of their income tied up in monthly payments, even high earners in this generation are struggling to save for a down payment or qualify for a mortgage. Debt, not disinterest, might be the real reason Gen Z is falling behind—at least for now. 4 Gen Z's biggest financial concern is how they are going to pay off their debt. Getty Images Advertisement 'Though Gen Z Americans may dream of homeownership, still-high housing costs mean that stepping onto the property ladder may not be possible at this point in time,' says Hannah Jones, senior economic research analyst at 'By prioritizing paying off debt, Gen Z prospective buyers are setting themselves up for success when homeownership does become more feasible.' The 2 financial personas and where Gen Z fits in PYMNTS Intelligence identifies two key money management mindsets: Planners , who proactively save and pay off credit cards , who proactively save and pay off credit cards Reactors, who handle bills as they come and often rely on credit or loans Advertisement Gen Z overwhelmingly falls into the latter group. A striking 73% of Gen Zers are classified as reactors, making them more likely to live paycheck to paycheck, carry high-interest debt, and struggle to build savings. That reactive approach can seriously undermine major financial goals, like buying a home, because it prioritizes short-term survival over long-term stability. Even more surprising, the reactor mindset is gaining ground among high earners across generations. Since February 2024, the share of six-figure earners who identify as planners has dropped by 25%. Now, 52% of top earners are reactors, a shift that underscores how widespread short-term financial thinking has become, even among those typically viewed as having the means to plan ahead 4 Even high earners in this generation are struggling to save for a down payment or qualify for a mortgage. Getty Images/iStockphoto Risk over security: The Gen Z money mindset Unlike baby boomers, 54% of whom are planners focused on long-term stability, Gen Z is chasing growth. According to the PYMNTS report: Advertisement Just 7.7% of Gen Z cite retirement saving as a top financial priority, compared with 22.1% of baby boomers. Nearly 7% of Gen Z say their No. 1 goal is starting a business, making them eight times more likely than boomers to focus on entrepreneurship. 'Gen Z Americans have time on their side and may be more willing to take big swings financially, while older generations are more risk-averse,' says Jones. While starting a business can lead to long-term wealth, it typically comes with short-term financial instability, exactly what makes it harder to qualify for a mortgage or build up a down payment. Irregular income, high credit utilization, and limited savings make it much harder to qualify for a mortgage under traditional lending models. Even high-earning Gen Z entrepreneurs might struggle to demonstrate the consistent income or financial reserves lenders expect. This risk-oriented mindset might be a reaction to the current conditions of the housing market. Buyers now need to earn 70% more than they did just six years ago to buy a home, to say nothing of the difference between buying a house now than in the 1960s and '70s, when many baby boomers bought their first homes. These conditions have made many in Gen Z feel that shooting for the moon in business is a more realistic goal than saving for that white picket fence. 4 Gen Z is more willing to take risks than previous generations. Getty Images/iStockphoto Why buying a home is still a priority—just not the first one Homeownership hasn't fallen off Gen Z's radar, but it's taking a back seat to paying off existing debt. Buying a house ranks as this generation's second most important financial goal, with 14.1% of Gen Zers ranking it as a priority. But deprioritizing homeownership, even temporarily, can come at a long-term cost. In a market where prices keep climbing, every year spent focusing elsewhere can make the eventual buy-in more expensive. And because lenders heavily weigh savings, credit usage, and income consistency, Gen Z's current financial behaviors—like revolving debt and low reserves—can delay homeownership even further, regardless of intent or income. Advertisement In other words, Gen Z still wants to own, but the reactive financial path they're following makes it harder to get there. Without a shift in priorities, many might find themselves stuck in a cycle where the dream of owning a home never quite catches up to their ambition. 4 The generation is mostly concerned with first paying off existing debt, putting homeownership on the back burner. Getty Images What Gen Z can do differently To bridge the gap between ambition and ownership, Gen Z might need to rethink how they prioritize and manage their money. The good news is that paying off debt, Gen Z's top financial priority, will eventually help them buy a house by lowering their debt-to-income ratio. The area where they can make the biggest changes, though, is in moving from a reactive mindset to a planning mindset. Here's how they can get started: Advertisement Automate savings to gradually build up a down payment. Track spending patterns to identify areas to cut back. Use credit strategically, aiming to pay in full each month. Pursue both goals in parallel—treat debt repayment as a priority, but not at the cost of building a safety net to support future homeownership. Gen Z hasn't turned away from homeownership, but when the top priority involves risk or volatility, it can make the second one harder to reach. With the right habits and tools, Gen Z can build both the freedom to pursue big dreams and the foundation to one day own a piece of them.
New York Post
13-05-2025
- Business
- New York Post
The 10 most expensive housing markets in America — and NYC doesn't make the cut
Home prices climbed in nearly every one of America's top-dollar housing markets—but 10 cities stood out for having the nation's highest median sales prices. And 8 of these 10 metros were clustered in California, confirming the Golden State's reign as a desirable housing hot spot, according to the latest quarterly report from the National Association of Realtors®. What's more, many of these markets saw home price gains. San Jose, CA, registered the highest median sales price for a single-family home in the U.S. from January to March, reaching a staggering $2.02 million, up 9.8% compared with a year ago. Notably, San Jose made history last summer when it became the first U.S. city to cross the $2 million median price threshold since NAR began tracking data in 1979. Anaheim, CA, had the second-highest price for a typical home, at $1.45 million, up 6.2% year over year, followed by San Francisco, at $1.32 million, which saw an annual uptick of 1.5%. Honolulu was the only non-California housing market that made it into the top five, with the median sales price there surging 7.3% from the previous year, to $1.16 million, during the first quarter of 2025. San Diego snagged the No. 5 spot, with its median home price climbing to $1.04, up 5.7% from a year ago. The California cities of Salinas, San Luis Obispo, and Oxnard emerged as the sixth, seventh, and eighth most expensive housing markets, with prices just below $1 million across the board, representing annual increases ranging from 2.5% to 6.2%. The sole East Coast entry on the list, Naples, FL, came in ninth, with its median home sales price rising 1.8% from a year ago, to $865,000. Despite being devastated by deadly wildfires during the first weeks of the new year, Los Angeles saw the price of the typical home rise 4.8% year over year in the first quarter, reaching $862,000, and landing Tinseltown in the 10th spot on the list. Lack of supply boosts home prices So why are the home prices in these 10 markets so high? The short answer is that not enough new properties were being built to boost the local inventory, resulting in an upward pressure on the existing-home stock. 'Very expensive home prices partly reflect multiple years of home underproduction in those metro markets,' says NAR Chief Economist Lawrence Yun. 'Another factor is the low homeownership rates in these areas, implying more unequal wealth distribution.' Start and end your day informed with our newsletters Morning Report and Evening Update: Your source for today's top stories Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters In other words, homeownership in cities like San Jose and San Francisco is out of reach for the majority of inhabitants, and homebuyers tend to belong to the affluent set. Affordable markets, like the ones found in the Midwest, are known to have better supply and higher homeownership rates, according to Yun. The top 10 most expensive housing markets 1. San Jose, CA Median home sales price: $2.02 million Annual increase: 9.8% 3 San Jose topped the list of most expensive housing markets in the country. Uladzik Kryhin – 2. Anaheim, CA Median home sales price: $1.45 million Annual increase: 6.2% 3. San Francisco, CA Median home sales price: $1.32 million Annual increase: 1.5% 4. Honolulu, HI Median home sales price: $1.16 million Annual increase: 7.3% 3 Honolulu was the only non-California city in the top five. marchello74 – 5. San Diego, CA Median home sales price: $1.04 million Annual increase: 5.7% 6. Salinas, CA Median home sales price: $954,700 Annual increase: 6.2% 7. San Luis Obispo, CA Median home sales price: $953,400 Annual increase: 4.8% 8. Oxnard, CA Median home sales price: $931,500 Annual increase: 2.5% 3 Naples is the only east coast city on the list. UCG/Universal Images Group via Getty Images 9. Naples, FL Median home sales price: $865,000 Annual increase: 1.8% 10. Los Angeles, CA Median home sales price: $862,600 Annual increase: 4.8%
Yahoo
12-05-2025
- Business
- Yahoo
The 10 Most Expensive Housing Markets in America—and 1 State Dominates the List
Home prices climbed in nearly every one of America's top-dollar housing markets—but 10 cities stood out for having the nation's highest median sales prices. And 8 of these 10 metros were clustered in California, confirming the Golden State's reign as a desirable housing hot spot, according to the latest quarterly report from the National Association of Realtors®. What's more, many of these markets saw home price gains. San Jose, CA, registered the highest median sales price for a single-family home in the U.S. from January to March, reaching a staggering $2.02 million, up 9.8% compared with a year ago. Notably, San Jose made history last summer when it became the first U.S. city to cross the $2 million median price threshold since NAR began tracking data in 1979. Anaheim, CA, had the second-highest price for a typical home, at $1.45 million, up 6.2% year over year, followed by San Francisco, at $1.32 million, which saw an annual uptick of 1.5%. Honolulu was the only non-California housing market that made it into the top five, with the median sales price there surging 7.3% from the previous year, to $1.16 million, during the first quarter of 2025. San Diego snagged the No. 5 spot, with its median home price climbing to $1.04, up 5.7% from a year ago. The California cities of Salinas, San Luis Obispo, and Oxnard emerged as the sixth, seventh, and eighth most expensive housing markets, with prices just below $1 million across the board, representing annual increases ranging from 2.5% to 6.2%. The sole East Coast entry on the list, Naples, FL, came in ninth, with its median home sales price rising 1.8% from a year ago, to $865,000. Despite being devastated by deadly wildfires during the first weeks of the new year, Los Angeles saw the price of the typical home rise 4.8% year over year in the first quarter, reaching $862,000, and landing Tinseltown in the 10th spot on the list. So why are the home prices in these 10 markets so high? The short answer is that not enough new properties were being built to boost the local inventory, resulting in an upward pressure on the existing-home stock. 'Very expensive home prices partly reflect multiple years of home underproduction in those metro markets,' says NAR Chief Economist Lawrence Yun. 'Another factor is the low homeownership rates in these areas, implying more unequal wealth distribution.' In other words, homeownership in cities like San Jose and San Francisco is out of reach for the majority of inhabitants, and homebuyers tend to belong to the affluent set. Affordable markets, like the ones found in the Midwest, are known to have better supply and higher homeownership rates, according to Yun. Median home sales price: $2.02 millionAnnual increase: 9.8% Median home sales price: $1.45 millionAnnual increase: 6.2% Median home sales price: $1.32 millionAnnual increase: 1.5% Median home sales price: $1.16 millionAnnual increase: 7.3% Median home sales price: $1.04 millionAnnual increase: 5.7% Median home sales price: $954,700Annual increase: 6.2% Median home sales price: $953,400Annual increase: 4.8% Median home sales price: $931,500Annual increase: 2.5% Median home sales price: $865,000Annual increase: 1.8% Median home sales price: $862,600Annual increase: 4.8% Inside Anna Wintour's New York City Townhouse as She Preps for the Met Gala Lauren Sanchez Shows Her and Jeff Bezos' $165 Million Los Angeles Home Richard Gere and His Wife Are Already Planning a Move Back to the U.S.
Newsweek
03-05-2025
- Business
- Newsweek
Millennial Home Buyers Are Looking for Properties with 1 Specific Room
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A real estate expert has shared his insights into a type of room that is increasingly popular among millennial homebuyers. Newsweek spoke to Fred Loguidice, 42, who has worked in the property industry for over 11 years, about the rising interest in quiet rooms. "It's more of a retreat—a space for relaxation, meditation, yoga, or just a peaceful escape after a long day," he said, adding that some buyers may use it as a soundproof office space. A headshot of Fred Loguidice. A headshot of Fred Loguidice. Michael Collins According to survey responses from 6,817 recent primary residence buyers collected by the National Association of Realtors® (NAR) between July 2022 and June 2023, millennials aged 25 to 43 made up the largest share of home buyers at 38 percent. Within this group, older millennials (ages 34 to 43) accounted for 21 percent, while younger millennials (ages 25 to 33) represented 17 percent of all home buyers. Loguidice, based in Delaware, explained that he started noticing a need for quiet spaces in homes around late 2022. "It is a multi-functional space but with a strong emphasis on tranquility and minimizing external noise," he explained. Today, only 13 percent of American workers remain fully remote in early 2025, and another 26 percent have hybrid jobs, according to the academic clearinghouse WFH Research. "Younger professionals, particularly those in their late 20s to late 30s, who are often in the early stages of their careers and frequently work remotely, are definitely showing interest," Loguidice said. A stock image of a woman reading a book at home. A stock image of a woman reading a book at home. Daniel de la Hoz/iStock/Getty Images Plus The owner of Sell My House Fast Delaware added that couples without kids aged 30 to 50 are also interested in these spaces. He said: "For some, it's a dedicated home office where they can work without distractions, maybe with some extra soundproofing for virtual meetings. For others, it's a room that can be closed off from the main living areas and has features that promote calm and quiet. "This could include things like blackout curtains, comfortable seating, calming colors, and sometimes even sound-dampening materials." Loguidice added that the serene escape isn't mainstream yet, but he is certain it will be. A Growing Trend for the Future He told Newsweek: "While a 'quiet room' might not be a standard listing feature yet, the underlying desire for calm and dedicated spaces in homes is definitely growing. "Sellers who can creatively showcase a spare room or even a well-designed alcove as a potential quiet retreat might find it to be a compelling selling point, especially in certain markets. "It taps into the increasing focus on wellness and mental health within the home environment."
