Survey looks at how the next generation of homebuyers manages their finances and how mortgage professionals can support their needs.

While homeownership may appear unpopular to younger generations, data shows that millennials and Gen Z are still in pursuit of property — just later in life. Also of note is that younger generations aren’t entirely digital. While they don’t want to be cold called, they do want to be able to talk to a human when needed. FinLocker, a data analyst that focuses on consumers’ financial data, recently partnered with students in the American Marketing Association’s group at the University of Southern California to survey millennials and Gen Z consumers on their financial habits. The survey was inspired by the National Association of Realtors’ 2022 study which identified that 43% of homebuyers were millennials and 2% of homebuyers were Gen Z buyers aged 18 to 22. Over a four-week period from mid-March to mid-April 2022, USC students interviewed millennials and Gen Z. The survey was designed to answer how the next generation of homebuyers manages their finances and how financial goals can be achieved by younger generations. More importantly, the data raises the question of how can mortgage professionals cater to a generation of young homebuyers? Prabhakar Bhogaraju, executive vice-president and the head of strategy & product development at FinLocker, said that both generations regarded financial freedom and owning a home one day as their two top priorities. Bhogaraju said that mortgage professionals should take notice of the median homeowner age rising due to spiking home prices and student debt, specifically with Gen Z consumers. The survey results indicate that student loan payments are the primary reason for delaying young people from buying homes. 

Source: National Mortgage Professional