Due to prices rising at a rate far exceeding wage growth, many believe that most of those in younger generations — Millennials and Gen Z — will probably never be able to afford homeownership and will be renting forever. While this is certainly true of some of them, some young adults are hoping to disprove this. The pandemic came with a lot of job losses, but for those who were able to retain their positions, their decreased spending during lockdowns meant increased savings.
And many of them are using their savings very smartly — as a down payment on a home. In a 1200 person survey of young adults, 83% said they had increased their savings during the pandemic. 59% of those with extra cash intend to put some of it towards a down payment. 64% plan to spend it on everyday expenses. The total is greater than 100% because some percentage of them plan to do both.
Young adults don’t necessarily know how to purchase a home, though, especially since many of them are first-time homebuyers. The survey also asked how respondents are making their decisions and who has influenced those decisions. The biggest factor was parents, with 71% asking their parents for advice. 61% asked friends and half asked their siblings. Over a quarter stretched further for help, asking grandparents or even taking advice from celebrities.
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