Anyone born between 1981 and 1996 (ages 23 to 38 in 2019) is considered a Millennial, and anyone born from 1997 onward is part of a new generation—Gen Z. The oldest among this rising generation are just turning 22 this year.
Consumers born in 1997 or later are taking out more credit and increasingly preparing for homeownership. About 14 million Gen Z consumers who are 18 or older are taking out credit. And that includes those who are taking on mortgages, according to the latest Q2 2019 Industry Insights Report from TransUnion.
The rapid growth in Gen Z credit activity is occurring despite many of these individuals having grown up during the Great Recession. Though the recession itself was relatively short, its impact was felt for several years. As more members of this group come of age, continued growth in credit and homeownership is expected.
Mortgages had the largest year-over-year growth rate spike with Gen Z consumers, up 112%, according to TransUnion’s data.This generation overall is showing an eagerness to get into homeownership, higher than older generations at the same age. More than half of Gen Zers from ages 18 to 23 are already saving for a home. And 59% plan to buy a home within the next five years—before they reach the age of thirty.
Gen Zers cite wanting to own a home for reasons like building their personal wealth over time. And they recognize that having a clear vision and goals about homeownership is an important step in the process.
If you’re beginning to plan for homeownership, take the first step by talking to a licensed mortgage professional today.