Gen Z Is Holding Out for Sub-5% Mortgages. It’s In for a Rude Awakening 

The narrative blaming young adults for their inability to become homeowners is as persistent as it is tired: If Gen Z would simply stop spending money on dining out, shopping, and luxury experiences to flaunt on social meda, the door to homeownership would magically fly open. But all this finger-pointing ignores fundamental truths about the economy. In short, Gen Z is not failing to buy homes because they refuse to make sacrifices; they are priced out by a compounding web of structural barriers.In fact, young adults are more willing to compromise than critics give them credit for. Most are more than willing to give up their “little treats” for a shot at the American dream.However, there is one big obstacle standing in their way that they can work on: a very skewed perception of mortgage rates now and in the future.Future homebuyers facing the present realityThe next generation of homebuyers is actually more flexible than some of their harshest critics would give them credit for. According to a recent report by Cotality, 78% of Gen Z homebuyers say they would willingly cut lifestyle spending to afford a home. Moreover, 74% are prepared to compromise on square footage, accepting a sm...