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Millennials and Gen Z-ers struggle to buy homes but don't lose hope

New Redfin survey cites affordability as top barrier
Posted at 3:15 PM, Oct 23, 2023
and last updated 2023-10-23 15:41:12-04

JUPITER, Fla. — Many young Americans, including millennials, claim they can't buy a home, and some actually believe they'll never be able to do so. Still, many in the younger generations aren't giving up hope.

Bryyon Jones and Cassie Querry are new parents who just settled on a rental in Riviera Beach.

"We want to get a house," Jones said.

Bryyon Jones and Cassie Querry want to buy home in South Florida, but for now they're renting
Bryyon Jones and Cassie Querry want to buy a home in South Florida, but for now they're just renting.

A new Redfin survey showed one in five millennials believe they'll never own a home. About one in 10 Gen Z-ers think the same. The study cites affordability as the top barrier and said according to those who do plan to buy, 40% are working side jobs to afford the down payment.

The Redfin study goes on to say one quarter will use a cash gift from relatives.

"I know a lot of people who are looking for help from their parents, and I'm not out of that category," Weston Albury, who is searching for a home, explained.

The 28-year-old said his search for his forever home is on hold right now because he's tired of battling cash buyers.

Weston Albury has given up trying to buy home in South Florida
Weston Albury says he's given up trying to purchase a home in South Florida, where he's constantly battling cash buyers.

"It's terrible," he said. "I've all but given up at this point. I've put everything on hold until interest rates get a little bit better. Insurance is crazy right now."

Albury relocated from the Bahamas after Hurricane Dorian.

Holly Meyer Lucas, a South Florida Realtor, said it's tough for these generations to compete.

"FHA (Federal Housing Administration) loans are really challenging to get approved here by sellers," she said. "Cash is king, and now there's just this vortex of the inability to buy a home."

Holly Meyer Lucas talks about affordability barriers to purchasing home in South Florida
Holly Meyer Lucas, a South Florida Realtor, says there is "just this vortex of the inability to buy a home."

She argued sellers need to be OK with occasional contracts from millennials who aren't purely cash.

"It's typical to be able to put 5% down or 3.5% down, but in our area, sellers are looking for skin in the game and, you know, having that large down payment," Meyer Lucas said. "It's daunting. It's beyond challenging. It's, like, outside the realm of comprehension for a lot of people."

She said it's also important to remember South Florida is unique.

"Taking a step back and acknowledging that our area has a lot of trust fund money and a lot of help from parents," Meyer Lucas said.

Meyer Lucas stressed looking west and north for newer developments and opportunities at a lower cost. She also said she's seen some promising signs recently. She said her team has worked with some Gen Z buyers who have zeroed in on fiscal responsibility and had some success.