If you’re a younger buyer, including a member of Gen Z, you may be asking a big question: Will I ever be able to buy a home?
It’s understandable to feel concerned about inflation, home prices, mortgage rates, and saving enough to get started. Those challenges can make first-time homeownership feel out of reach. But a difficult path doesn’t mean there is no path, especially with knowledgeable professionals helping you explore your options.
The goal is to turn a broad worry into a practical plan. Start with your down payment, look for ways to build savings, and stay open-minded about where and what you buy.
1. Explore Your Down Payment Options
If the down payment feels like your biggest hurdle, don’t assume you have to solve it entirely on your own. Assistance programs and help from loved ones may be options worth discussing with a mortgage professional.
Ask About Down Payment Assistance
The original article notes that there are more than 2,000 down payment assistance programs designed to make homeownership more achievable. Rather than trying to sort through every possibility yourself, ask a trusted mortgage professional which options may fit your situation.
Make the conversation specific. Explain what you have saved, what you are working toward, and where you feel stuck. Then ask what assistance options you should explore before setting your savings target.
Discuss Any Help From Loved Ones
Family help is not available to everyone, but it is part of the picture for some younger buyers. According to the LendingTree findings cited in the original article, 49% of Gen Z homebuyers received money from loved ones that they used toward a down payment.
If someone has offered to help you, talk with your mortgage professional about the guidelines for gift money. Don’t build your plan around that contribution before understanding how it would fit into your financing.
Find Out What You Actually Need
You may not need to put 20% down, unless your loan type or lender requires it. Instead of treating that percentage as an automatic requirement, ask what down payment applies to the options you are considering.
Your first step is a conversation, not a guess. Ask:
- What down payment options should I explore?
- Are there assistance programs that may fit my situation?
- What guidelines apply if a loved one contributes money?
- How much should I plan to save for my down payment?
2. Consider Sharing Housing Costs to Build Savings
Another approach some Gen Z buyers take is leaving a rental and moving in with friends or family. Sharing housing costs can help reduce what you spend on housing and allow you to build savings faster.
As Bankrate explains in the passage cited in the original article:
“Many have opted to stop renting and live with family in order to boost their savings. Thirty percent of Gen Z homebuyers move directly from their family member’s home to a home of their own, according to NAR.”
This arrangement won’t work for everyone. But if it is available to you, consider whether it could support your homebuying goal.
Before making a move, talk openly with the people involved. Discuss the shared living arrangement, what you would contribute, and how you would use the opportunity to save. Give the plan a clear purpose rather than treating it as an open-ended pause.
The practical question is simple: Could changing your living arrangement help you make more progress toward the down payment you discussed with your mortgage professional?
3. Broaden Your Home Search
Once you have saved enough to begin looking, avoid narrowing your search too early. When the supply of homes for sale is limited and affordability is tight, an agent can suggest strategies and options you may not have considered.
Look Beyond One Location
Rural and suburban areas are often more affordable than urban areas. A city may offer the energy and activity you enjoy, but the cost of living may be a reason to consider a location farther out.
You don’t have to decide immediately that you will leave your preferred area. Start by asking your agent to show you alternatives. Compare the choices before ruling them out.
Consider Different Types of Homes
Smaller homes, condos, and townhouses can give you more ways to enter the market. If your search includes only one type of property, ask yourself whether that is a true requirement or simply what you first pictured.
Colby Stout, Research Analyst at Bright MLS, explains:
“Being flexible on the types of home (e.g., a condo or townhome versus a single-family home) and exploring more affordable neighborhoods is important for first-time buyers.”
Being flexible does not mean accepting any property. It means giving yourself room to consider a home that meets your needs in a different way.
4. Separate Your Needs From Your Wants
Your first home does not have to be your forever home. It can be a starting point for homeownership and building equity, rather than the final version of everything you want.
Work with your agent to make two lists:
- Must-haves: The features you need your first home to deliver.
- Nice-to-haves: The features you would enjoy but are willing to reconsider.
As Chase puts it:
“An open-minded approach to house-hunting may be one way for Gen Z homebuyers to maintain some edge. This could mean buying in areas that are less expensive. Differentiating needs vs. wants may help in this area as well.”
An agent can help you prioritize those lists and identify homes that deliver on your most important needs. They can also explain how equity may benefit you over time and potentially help make a future move possible. That is a possibility to understand, not an outcome to count on.
Turn Your Goal Into a Next Step
Real estate professionals can share expertise about approaches other buyers have used. The Directors Mortgage passage cited in the original article emphasizes the same strategies: exploring down payment assistance and sharing living costs with relatives to bring homeownership closer to reach.
You don’t have to solve every part of the process at once. Write down what you have saved, your biggest obstacle, and your must-have home features. Then reach out to Ed Parcaut to discuss your mortgage questions and identify a practical next step toward your first home.
