Jan. 13, 2020
According to an Urban Institute study, homeowners who purchase a house before age 35 are better prepared for retirement at age 60. Arizona is a great place to purchase a home early, median price ranges are significantly lower than cities like San Diego.
A fantastic area to retire in is Surprise Arizona, Retirement homes in Sun City Grand are a popular choice.
The good news is, current younger generations are believers in home ownership. The study also shows that most of today's elder owners made a home purchase prior to being age 35.
According to a Freddie Mac survey,
“The dream of home ownership is alive and well within “Generation Z,” the demographic cohort following Millennials.
Our survey…finds that Gen Z (born between 1995 and 2015) views home ownership as an important goal. They estimate that they will attain this goal by the time they turn 30 years old, three years younger than the current median home buying age (33).”
When and if Gen z aspiring homeowners purchase at an early age, the Urban Institute study shows the impact it can have.
Based on this data, those who purchased their first homes before the age of 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-20s and early-30s had close to $50,000 left, but traditionally purchased more expensive homes.
Although the vast majority of Gen Zers want to purchase and own a home. They are somewhat confident in their future, “In terms of financial awareness, 65% of Gen Z respondents report that they are not confident in their knowledge of the mortgage process.” and that is not uncommon in any of the generations when they were first time home owners.
Looking at the data, younger generations are not alone not knowing the mortgage/home purchasing process. Feel free to contact us! And you can get a head start on learning about the real estate purchasing process.