More than half of Gen Zers, or those born between 1997 and 2012, said they are now willing to purchase a fixer-upper amid soaring home prices and elevated mortgage rates.
About 57% of 1,000 Gen Zers polled by Clever Real Estate said they would be willing to put in an offer on a fixer-upper due to the high prices of the typical home. In addition, 56% said they would buy a home with asbestos, 54% said they were willing to purchase a property lacking central air conditioning or heating, 44% would buy a home needing foundation repair, and 41% would buy a home with a leaky roof.
"A lot of them are first-time buyers; they don't really know the true costs of homeownership and how these renovations and repairs can really be a lot," Jaime Dunaway-Seale, a data writer at Clever Real Estate, said in the report.
Apart from their willingness to purchase a fixer-upper, about 52% of Gen Zers anticipate their first home would cost less than $250,000.
Homeownership Is Increasingly Out of Reach
Housing affordability is becoming a significant barrier to homeownership among Gen Zers, with 54% saying they are worried about not being able to afford a home while 45% saying they are worried about not being able to afford mortgage payments.
Additionally, at least 33% of Gen Zers who were also homeowners said they were struggling to pay their mortgage. As of June, the median monthly mortgage payment at a 6.87% rate was $2,785, according to Redfin.
Currently, only 18% of Gen Zers said they could afford to purchase a home. Furthermore, 79% of Gen Z homeowners said they don't believe the average member of their generation could afford a home in the current market. This is further noted in the survey where 63% of Gen Zers said they have less than $10,000 in savings. Zoomers are also three times more likely than millennials to have nothing saved.
Currently, the median sale price for homes in the US is $397,250. The median asking price also increased to $414,975. In comparison, the median cost of a fixer-upper house is about $283,000.
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