More housing supply, lower student debt burdens a factor
Millennials have been staking their claim on the housing industry. But Gen Zers? Experts say they’ll play an even bigger role, notching a higher homeownership rate than Millennials by 2035.
Homeownership rate to rise with Gen Zers
According to a recent survey of economists from Zillow, 45 percent of experts say Gen Z homeownership will be higher than that of Millennials (at comparable ages) by the time it all shakes out.
Why the uptick? There are a number of reasons, according to the economists surveyed. Some say housing supply will expand, others say they’ll be a growing desire among Gen Zers to own rather than rent.
Some also say student loan debt will decrease and less-costly housing markets will become more appealing.
Here’s how Skylar Olsen, Zillow’s director of economic research, explains it: “In 2020, the oldest Millennials will begin turning 40, capping a turbulent decade that presented any number of homebuying difficulties for them at the same time as they aged into their prime homebuying years and severely denting the homeownership rate among 35-to-44 year-olds. By 2035, when the younger Gen Z begins reaching the same age, experts said they largely expect conditions to be more favorable and for the homeownership rate among 35- to-44-year-olds to be higher than it is today.”