Why some Chicago Gen Zers are tabling homeownership for now
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Illustration: Maura Losch/Axios
Steep housing costs are putting Gen Z's homeownership dreams on hold.
The big picture: Gen Zers, roughly those aged 12-27, feel deeply pessimistic about the world around them, Axios' Erica Pandey reports.
- For this story, we're focusing on the adult cohort.
What they're saying: "The only way to have a chance to get a place is to put in an offer before even touring it," Andersonville renter Jean Pabon, 26, tells Axios.
- Pabon says he's living car-free and on a tight budget to save for a down payment on the condo he's been dreaming of for two years.
Although Chicago home prices run below the national median, they're still over a third higher than pre-pandemic, according to Redfin.
State of play: Many younger adults are struggling to swing pricey rents and are returning to their childhood bedrooms or basements. Others are splitting the bill with roommates.
- Over half of U.S. adult men (57%) and women (55%) under 25 lived in their parents' home in 2022, an arrangement that's become more common in the past several decades, new census data shows.
Reality check: Some would rather rent in buzzy neighborhoods than shell out for houses further from the action.
- That's the case for Megan Homme, who lives in a 500-square-foot apartment in Old Town. "I'm not ready to commit to a place long-term," Homme tells Axios.
The latest: Fewer than 1 in 5 adult Gen Zers (18%) either own a home or are married to someone who does, according to a recent analysis by John Burns Research and Consulting.
We caught up with the firm's chief demographer, Chris Porter, about Gen Z and how the cohort is shaping the real estate industry.
- This interview has been lightly edited.
Does Gen Z care about becoming homeowners?
Our research shows the majority of young adults still hope and expect to own a home. At this stage in their lives, homeownership seems less important, because it feels so far out of reach. The cost of getting into your first home is so much more expensive than it has been historically.
People are getting married and having kids later in life, so it follows that they're maybe putting homeownership off a little longer. We also see some waiting because they want to save up for something nicer down the road.
Some reports suggest higher homeownership rates among Gen Z. What's driving the disconnect?
Analysts often aren't looking at the entire adult population of Gen Z. That can be a little misleading, because in order to be included in the "homeownership rate," you have to have formed your own household. For younger people, even that is tough in and of itself.
How might homebuilders cater to Gen Z?
Gen Z is open to compromise on some home features, including space to entertain. Many say they're willing to accept less than a two-car garage.
The kitchen doesn't have to be huge, but it needs to have the essentials. There's a misconception that Gen Zers DoorDash everything.