It’s nice to see the boomers help out their children. They’re starting to get the picture with the way. The market is without help homeownership won’t be possible for a lot of people pretty soon.
The media is a joke. I'm Gen Z, graduated university debt free and work in finance. I don't know a single person in my age group whether from high school or university that has bought a home. Most still live with their parents or work minimum wage jobs. What alternative reality is this?
“Almost 3/4 of Gen Z’ers plan to buy a home within 6 years.” What a worthless poll. When we are young, most of us also plan to be millionaires within 6 years. Doesn’t mean anything.
@@Wydsbdjwu18393 bruh you really don't understand why this poll is trash do you? guess what, nobody is bitter. good for Gen Z if they buy houses. it's just bad poll design worth pointing out so CNBC doesn't keep funding garbage research. hope that makes sense, it's not all about you lil bro
Actual house buying data shows this as well. Gen Z are more financially savvy and save more compared to millenials/genx/boomers and are buying houses earlier.
@@videogamingmemoriesHah are you kidding me? They are lazy cry babies more obsessed with trends than any gen before. Don’t even get me started on subscription services and delivery app.
@@Minney-Mea lot of the cheap home prices are because there is little job opportunities in the area now with remote work it makes more sense but also realize the house price have a higher risk to fall than big cities.
And loads of these kids got the deposit from mum and dad . Thats the richer ones purchased there homes , the rest of gen Z cant afford the deposit now let alone a house . Have not even watched this doc. yet but i have seen this here in the UK . We need to let the housing market crash , its only making the banks rich , rich ,rich in the long run , not your offspring .
@@DavidGoggins-wk2wp Exactly this. If the remote work market dries up and you lose your job you're effectively stranded. Still might be worth the gamble with how ridiculous house prices are in the big cities though.
I bought my house in 2012, and there were just as many people whining about affordability then as there is now. As a millennial and per the data shown first in this video, my generation apparently had it harder than GenZ. It’s not easy, but it’s not impossible!
@@seanhepner7813are you stupid or just manipulative? 2012 was the BEST year to buy a home in the U.S. before average home prices started to skyrocket again AFTER the 2008 Recession. We don’t live in the year 2012, we live in 2024.
@seanhepner7813 I actually have to stay out of the fray - I downsized and moved to a lower cost of living area in 2021. Fixed interest rate of 2.5% on 200k loan. I am cutting a fat hog- others, not so much
I'm skeptical about the news that Gen Z is driving the housing market. It's more likely that their parents are the ones buying homes. I'm actually hoping for a housing crisis in 2025, so I can snag some affordable properties after selling off some of my own. I'm also considering investing in stocks as a backup plan. Does anyone have insights on the best timing for these moves? I've made some good profits from trading, but I'm concerned about market volatility and the risk of a dead cat bounce. Can someone explain why this market phenomenon occurs?"
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This appears to be somewhat questionable news. It's more likely that Gen Z isn't the primary group buying homes; it's probably their parents. I'm eagerly anticipating a potential housing crisis to snag some affordable properties after selling off some in 2025. I'm also thinking about diving into stocks as a backup plan. Any thoughts on the ideal timing for these moves? I've made some good profits from trading, but I'm a bit worried about market instability and the possibility of a dead cat bounce. Can you shed some light on why this market phenomenon happens?
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Some own housing in cheaper locations and rent that housing out to complement their income in order to rent a flat in a city that they are able to work (at subsistence level). So, in the end everyone rents, and each level speculates on the one below, making the current housing bubble worse.
It's not about hard work anymore... it's more like a lottery system... even though the ones getting the help try their best to hide it and pretend they're self-made
But let’s also understand that he put 3% down on a $210k house. He don’t exactly get a $100k payout from his rich father for a place in Silicon Valley. He likely only needed $10k to get into the house. Yes his timing was good but I know a lot of people by age 21, who 20 years ago, had $10k saved up in the bank. There is nothing special about his story.
What a ridiculous analysis. Focusing on a 21 year old kid who bought a home at sub 3% is a UNICORN, not the norm. Younger people are now willing to accept that they can either rent forever or sign for 30 years of debt. The low interest rates of covered were just luck for anyone who bought during the time.
It actually demonstrates the statistic well. Gen Z have been in their careers for say 5 years on average. More than 20% of that time was in an extremely low interest rate environment. That is significant compared to other cohorts where the opportunity for them to buy overwhelmingly came when interest rates were elevated.
What a bogus report. How can you say Gen Zs are buying homes when you're only speaking about a tiny percentage of them? Not only that you also say genz has more debt, suffering from inflation, and suffering from an inflated home market. I am a lucky millennial who purchased a home when I was 26. 3 years later it doubled in price. No way I could afford my house at today's price. So much BS in this video.
"Single" does not equal "buying alone." Every single gen-z buyer I know has had significant financial assistance from their family. This includes ultra-high-earners.
@notme9976 not a millennial, you know nothing of my personal or financial situation, and your aggressive tendencies as a keyboard warrior signal that you're a pathetic person
Unfortunately that's just a common misunderstanding. I say unfortunately because if it was the truth that corps and foreign investors own millions of houses that are sitting empty, it'd be an easier fix. There was a study that published a number around 40% for share of homes that are not being used as primary residences for the owner(s). But that statistic is actually only for single-family homes being rented out. Owned homes (including mortgaged ones) are much, much more common than single family homes being rented out. If I recall correctly, that statistic is specifically referring to detached homes, as in not townhouses and apartment complexes, or multi-family homes (though I would think the latter category is not as statistically relevant in this day-and-age). In reality, corporate and foreign investment ownership of housing is mostly a non-issue at-large. There are definitely areas where it is a large contributor to the problem of housing costs (aka housing shortage driving up prices, despite what others might say), like downtown Atlanta, as far as I know; because in such areas there is a concentration of that behavior, wheras in other areas it isn't so much an issue. Many of the cities where this is the case are young, growing, and in the sun belt (part of the larger trend through the last decades of massive population increases in that region), and thus are good speculative assets. But most places in the country are experiencing housing price crises because of zoning and other regulations, as well as "NIMBY" behavior. For the latter, as opposed to the common framing that it is necessarily bad that people don't want things in their area, it is understandable that not everyone is thrilled by the idea of low-cost housing developments in their area, which will be used by poorer people, which is an issue because poverty and crime are deeply interconnected, and crime lowers property values and just decreases quality of life anecdotally as well. There isn't really a good answer in a decentralized system such as in the US, because if an issue is resolved in one place, it essentially pushes it somewhere else until over time that issue is fixed and the next one comes around and the cycle repeats.
they must think we're on crack to believe this BS they're trying to spin .. No Gen Z is buying, it's their parents. Low salaries + less jobs + overpriced Housing 2x-4x from 3yrs ago .. THERE IS NO MORE MONEY TO GRIFT , WE ARE BROKE!!!!
This is real. Down the street from me the last two homes that sold in the same neighborhood have both sat empty for over a year after being sold. These homes were both over 1M dollars.. that street has maybe 20 homes (5 acre lots) so 10% of that neighborhood is unused homes.
Grandparents or rich parents. I'm not knocking it, because I'd want my kids to be well off as well. I just wish a lot of people would quit pretending they got it out the "dirt" or worked harder than everyone to get a home. It's like lying about working out, diet and such when you were just getting ozempic and HGH off your parents insurance. Be honest.
Wait. I thought the narrative was that gen Z was never going to be able to buy homes. Now apparently they are beating all the other generations to the punch? At least get your story straight 😂
Because these Gen Z are trust fund babies and their parents took advantage on the first time home owners government loans when the interests rates was at 4%. I know because i met a few.
Nonsense, there are jobs that pay six figures straight out of college. The trouble is, they tend to be in high cost of living areas so a six figure salary may not go as far as you would like.
“It was cheaper to buy a home than to live on campus”. He meant to say it was cheaper for my daddy to buy me a home, than pay for me to live on campus.
@@jon9103 A parent co-signed. That means that the kid pays for everything, but if the kid fails, the lender can go after parents assets for any shortfall. The kid in the video already has ~100k of home equity from apreciation and downpayment. The parent is in the clear if things don’t crash.
@@skyak4493 just because they co-signed doesn't mean they didn't also help in other ways. As far as I can tell, the video didn't explicitly say one way or the other and it's not something that he would necessarily go out of his way to reveal.
I guess CNBC didn't look at all the Tik Tok videos of Gen Z women who bought homes and now are selling them to move back into apartments because they were not aware of all the costs associated with home ownership and would rather have a landlord take care of problems that arise rather than themselves.
@@mcmans.the average home (including rented homes) has been “unaffordable” for several years now. That reality will come home to roost at some point or other..
@@mcmans.deglobalization and the reshoring of manufacturing will keep inflation high for years which means mortgage rates will also be high. Mortgage applications have been sinking and will likely not recover for a long time until rates drop or housing prices drop. The more likely one happening is the latter.
Read Fred Harrison, the world is in deep this time. The crisis is expected in 2026. It is (on average) a periodic 18.6-year cycle. The dept level as a percentage of the GDP is too great this time, and no one is going to lend the USA anything.
@@mcmans. That is an argument for a price correction. When the carrying cost of a home goes up, price should come down. The money to pay increased property taxes and insurance doesn't just materialize out of thin air.
Its not hard to put down 10% to 20% on 200k home in the middle nowhere if they started their career at 21 and bought at 24. You can save that much on 70k+ salary
@@notyourtypicalfarah7194 I think we are lucky as we are the first generation who can work/ own businesses remotely online. I have so many friends moving to Ohio and Michigan. Then you save so much on having the lower downpayment that you can actually afford a secondary home in a warm climate maybe in Jamaica or Belize to escape the cold winters. The very few of us who understand this are moving to the next UP and Coming cities. Cities that Gen Alpha and Beta will flood into in the coming decades driving up our home equity.
You clearly didn't watch the video, many of them are working remote which allows them to buy in lower cost parts of the country. A $200k home is very doable by a young professional.
@@notyourtypicalfarah7194 Living with their parents, no health insurance, and not investing in their retirement, yeah - they can save that much easily.
Says it's "higher" for home ownership when the last available data shows it's going UNDER every single generation before by next year. No data analysis team CNBC?
@@Dave05J mouth breathers that work at Walmart are projecting. There are many gen z making 70k if not 100k in union trades, I.T, sales, project management etc
As a 34 year old millennial most of the Gen Z kids that are now young adults I know are all still living with their parents. That's just my perspective, I could be wrong.
I think they're overgeneralizing a generation. I know people my age in the Midwest who own homes and are having kids. No one I know who moved to the coasts is doing that yet. They're still blowing up my socials with bar nights, weekend brunches and big vacations. Where you live makes a big difference.
“Home values went up considerably from 2021 to where we are now” Actually, the value of the dollar just plummeted because of our incompetent government. So it takes more dollars to buy the same home from 2021. The home isn’t worth more, but rather the dollar is worth LESS.
Yeah exactly. A lot of my friends who own a home don’t have extra money to enjoy life. They can barely afford to travel. Just work all year round because they’re house poor. Lmao
@@el_chilango2953 - That will probably end in one of two ways - either the housing market goes into recession when these properties end up getting sold off, or everything else goes into recession because Gen Z is literally only buying houses.
@@el_chilango2953 That was my wife and I from 2000 to 2012. No vacations, tight budget, used cars, etc. When we sell our house next summer we'll downsize and be debt free. If you want to buy a house, make that your priority.
@@handleyobusiness Once you pay the tax once you can keep the chips forever without paying again though. Store not gonna come get the chips back from you.
As a millennial I do believe this. Many millennials have been laid off not once, but twice. Many of us graduated after the 2008 financial crisis and struggled to find work. We accumulated debt and couldn't find jobs in our fields. Jump 10-15 years, and the job market is great for these younger people that are making the same or more than we are because they graduated at the right time.
Also GenZ thinks RE prices only go up and you cant really blame them for thinking that.. millennials might have been younger but they remember the GFC and housing crash.
Story is based on a statistic. The example is just an example. The only nonsense is the huge difference in interest rates when each generation was in their early 20s. GenZ jumped on sub 3% rates. I am genX and my first mortgage was 12 5/8%.
The only Millenials and Gen Z's who I know have purchased a home have had substantial assistance from their parents. Be it through generous lump-sum payments or through assistance in mortgages.
Or like us early millennial, we did it as a 3 person suburban commune. We are unrelated by blood or marriage and no kids. 3 adult incomes and no dependents is the only way to have a middle/working class lifestyle. And still we always have at least 1 member at a time unemployed due to companies always laying off, going bankrupt or doing funky accounting. At this point thebonly marriage we will ever have is passing around a marriage license for the health insurance with prenups and no contest divorces, LOL.
As a gen Z getting my first home, I would not have done it without joining the military and receive the VA loan, as one of the biggest hurdle was to saving up for a 20% down payment. Also happen to live in a state that home prices are relatively cheaper than other states and major cities as that one of the big factor on how I can afford a home.
I’ll say I am 32 and bought my first house in 2015 at 23 years old. There is no way I would be able to buy a house if I was 23 in 2024. I paid $208k for my first house that is now worth $480k. It’s all about timing and luck and Gen Z is getting screwed in the housing market. Single family home ownership will be a luxury for the rich and for those who bought in at the right time.
@@sagepirotess6312, a lease doesn’t build equity. You also can’t sell a lease and cash in on that equity. You just wasted cash, if you could have borrowed at 2% and invested at 5%
@@TrueOrigins1618 no, a lease is still pay to live. Buy a property in cash! Or build in cash! Then you own. Anything less your just a fool, easy to part with assets.
I feel sorry for people who thinks owning a home always leads to success stories. Index funds are proven that it provides higher returns than owning a home with a ton of phantom costs, unlimited trips to Home Depot, etc. your mortgage is the minimum you’ll pay. I rent and if there’s any issues, I text my landlord. Rent is the maximum I pay. 20%-25% of my income goes to the stock market. All my friends who own a home don’t have money to travel and enjoy life. What’s the point of living if you can’t enjoy it because you’re house poor?
A house is the only investment that builds wealth while providing a necessity in shelter. There are no mutual funds that allow you to do both simultaneously.
@@beaniemacyou cannot call your house as an investment since you’re gonna live in it. You’re still gonna need to pay something for shelter whichever way you do it. Let me correct you. Owning a home is ONE WAY and not the only way to make wealth. I know a lot of people who can buy a home in cash but choose to rent and invest the difference. Another downside is when you’re house poor, you’ll probably have no liquid assets and imagine being stuck in the same place for decades. You’re gonna miss out on a lot of job opportunities since you don’t have the same flexibility. If you own a home, just expect things to go well because it can easily be a money pit.
@@beaniemacnot sure if you know but you can only realize the gains when you sell. And when you do, where are you gonna live? The amount of money you’re gonna make in a home would be the same cost you’re gonna pay for a new one. 😂 me telling you this a I watch my monthly dividends hit my bank account for life
This is the number one lie that has been told to homeowners who cheerlead like idiots at the astronomic rise in home values. It's no benefit until you sell.
I’m a Realtor, most gen Z that have bought had their parents help BIG TIME. Those without stable parents have bought at a much lower rate. Speaking for Central Valley in California. Nothing wrong with that but the data is off
The guy said he worked at least 40 hours a week to get that co-sign and that it wasn’t easy…that’s all you need to know about this video. Meanwhile I’m here with two jobs paying for eggs that cost 9 dollars
There's a huge difference between buying a home and being able to keep up with the payments... how many will lose their homes within the first few years.... a lot would be my guess.
*HIGHER THAN MILLENIALS AT 24. So basically 'Why are Trust Fund babies more spoiled today than they were in the past?" No 24 year old can afford a house. Don't care about outliers scenarios.
I'm 23 and work in tech and everyone I know is looking to buy a house within 3 years , it's not that uncommon... Maybe you're just in the wrong line of work for your goals in life?
@@Magicmak23 not now though after 2023 recruit.we will suffer most who will pass on 2027.Gone are the days for high tech jobs even google is laying off
@@Brodragon2225 I think people are just too used to hearing and repeating fearmongering online. The tech industry is known for booms and busts, and we're currently going through a regression to the mean. There was just over-hiring that occurred during the pandemic. Almost everyone I know has a TC of at least 130k.
I'm need to know how this kid at age 21 was able to qualify for a mortgage🤔. That rarely is possible given his age unless he inherited money or had a cosigner.
My husband and I bought our first home on March 25th, 2020 for $120,000 at the ages of 26 and 28 (making us younger millennials). We’d been married for six years, had an income of around $40k, combined student debt of around $80k, and were expecting our second child. We got no help from family with the down payment or co-signing, though we had lived with my parents and his at different times to save money on rent (we always payed rent, even when living with our parents). We did take advantage of a government program that helped us with our down payment, and the seller was self-representing and favored us over other offers because we knew them personally. Our rate is 3.65%, and our monthly payment is lower than any rent we’ve ever paid. Our 3-bedroom house is now valued at close to $300k. It’s our only asset and we are forever grateful that we broke into the market when we did-one week before the shutdown.
The issue with millennials is their tendency to purchase homes in high-priced areas, while Gen Z is moving out of big cities to afford homes on an average income. Gen Z is also adopting remote work and getting married earlier than millennials.
my wife and I own single home family rentals. we have $200,000 left on mortgages. We are now the possibility of maintaining $70,000 annual income by selling and investing in stocks and bonds. How does this work out?
Certainly I have, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Jessica Lee Horst” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
This Jessica lady looks great.i looked her name up. We have about $300,000 in IRA and 401(k) and 403(b) assets. Is that something she can manage? I already left a message, what’s the response timing like?
My husband is Gen Z (1997) and I am a Millenial (1996) we both graduated college as aerospace engineers. I spent 1.5 yrs not taking any vacations, big expenses in order to pay off all my student loans. My car is 15 years old, and I own it. My husband and I put down 20% on a 415k home with our own money that we saved for 4 years.
Gen z is 1997-2012. That means they’re age 27-12. I highly doubt at even 27 which is the oldest gen z was able to Afford 10-20% down payment in current market. I know there’s select few who did well and hats off to them. But majority I highly doubt it. Research more and I bet most if not all have their parents co signed or better yet as owners.