Gen Z and Millennials Will Start Buying Real Estate in 2025
For years, Millennials and Gen Z—two of the largest generational cohorts in history—have struggled to break into the housing market, especially here in the Seattle-Tacoma metro market. Saddled with student debt, stagnant wages, and skyrocketing home prices, many have deferred the dream of homeownership. However, 2025 could mark a significant turning point as economic shifts and evolving priorities align to make homeownership more attainable and desirable for these generations. Here's why this trend is emerging and how these buyers are making it happen. The Financial Shift: How Are They Affording Homes? Declining Inflation and Stabilizing Interest Rates: After several years of economic turbulence, inflation has begun to cool, and the Federal Reserve’s aggressive interest rate hikes have steadied. Mortgage rates, which peaked at over 7% in the early 2024, are now projected to settle into a more manageable range. Lower borrowing costs make monthly payments more affordable, opening...