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If Gen Z can’t afford the rent, how are they ever going to buy a home?
A recent study by Point2 examined housing markets in 100 of the largest U.S. cities, using earnings and employment data to find the places where Gen Z-ers have the best and worst chances of buying a home.
Older Gen Z-ers, that is. The generation ranges from ages 12 to 27, and while that comprises roughly 70 million people (or about 21 percent of the U.S. population), many of them are still children. The elders are early in their careers and consequently lower earners, and they face increases in inflation, home prices and interest rates with fewer financial reserves. Is buying even an option for them?
The study found that Gen Z-ers are out of luck in most large cities. Worst of all was expensive Fremont, Calif., where about 70 percent of homes sell over their initial asking price. Among the 17 cities studied in California, Fresno offered the best shot, ranking 46th overall.
The same was true in large East Coast markets. Richmond, Va., Newark, Boston and New York all were among the hardest areas for Gen Z-ers to own homes. In New York, the most buyer-friendly borough, the Bronx, still ranked just 58th overall.
There is hope in the Midwest and South, according to the study. Fort Wayne, Ind., offered the best chance — about 14 percent of local Gen Z-ers already own homes there. Corpus Christi, Texas, was next, followed by Detroit, where fewer homes sell for over the asking price. Homeownership among Gen Z is already about 17 percent in Detroit, a good indicator of continued success for others in the age bracket.
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