Gen Z is struggling to buy homes, but Lincoln may provide a better opportunity

LINCOLN, Neb. (KLKN) – A recent study examining housing markets across U.S. cities showed that Lincoln is one of the top spots for young people looking to buy a home.

The study found that home ownership among Generation Z in Lincoln was about 12.8%.

A home in Lincoln costs nearly seven times the median Gen Z income, which is low compared to other cities, according to the study.

Gen Z currently accounts for about 70 million people, or 20% of the U.S. population.

And those old enough to have their eye on homeownership face challenges such as high mortgage rates and inflation.

Kalyssa Duncan, a real estate agent with NextHome Integrity, said in 2017, a buyer could get a home in Lincoln for under $200,000. Now, she said the average is over $300,000.

Duncan said that previous generations were able to buy a house much more easily and that wages haven’t kept up enough for Gen Z.

“We’re pricing out these younger generations of homebuyers and really putting them behind,” she said.

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The study found that the worst places for Gen Z were mostly larger cities on the East and West coasts.

The most expensive was Fremont, California, where 70% of homes sold for higher than their initial asking price and cost nearly 23 times Gen Z’s average income.

Duncan said compared to the inflation in other areas, Lincoln has stayed reasonable.

“Being in the Midwest, our cost of living is a little bit more manageable compared to some of those bigger cities,” she said. “Our home prices reflect that as well. People are able to get a home at a reasonable price that competes with what the rent is for a similar unit.”

One recent buyer in Lincoln, Austin Cromwell, said it took about six months for him and his fiancee to find the right home, despite making multiple offers over the asking price.

He said young people today have a much harder time saving up for a down payment.

“I think 10 to 20 years ago, people were doing this a lot sooner,” Cromwell said. “But it’s good to be able to do it even in your 20s because it seems like some people still haven’t made it in their 30.”

He and Duncan agreed that buying a home takes patience. You should save up as much as you can for as long as you can.

Duncan added that there are programs that provide down payment assistance or credit for buyers to make their money go further.