The dream of owning a home is something deeply baked in the American psyche. However, with the recent increases in home prices relative to wages, the situation is becoming more challenging for a lot of people, young couples included. What was once fairly straightforward for generations gone by is now much more difficult.
The good news is that many young people are using strategies that make it far more likely that they’ll be able to eventually get the homes they want long-term. These approaches are creative and enable financial independence at an earlier age.
“We’re seeing a lot of couples looking for financing options and arrangements that are different from even five years ago,” explains Mortgage Quote. “The market is changing quickly because of the need for young people to find families and get on the right track relatively early in their lives so that they can reap the rewards later on.”
Teaming Up With Friends And Family
One strategy that’s being used right now is that young couples are essentially teaming up with whoever has capital. With the current age distribution, people over age 60 hold the most wealth, while those below 30 have the least.
The idea now is for Gen Z duos to literally go to mom and pop, or join with a group of friends to buy a house. This approach means that they can get the capital they need to put down the downpayment and meet various costs and expenses, like taxes and utilities.
Hunting For Hidden Gems
At the same time, a lot of young couples are also in the market for hidden gems. They know conventional properties are probably out of their price range, but there are often homes on the market for a discount.
So-called “distressed buyers” are no longer a target for home-buying companies and investors. Instead, they’re a tool and a lever that regular people are using to make the most of their cash savings. Sometimes, these discounts can be on the order of 20-30%, which is enormous in the property sector.
“You used to only see investors and perhaps experienced home buyers engaging in these types of tactics,” Mortgage Quote explains. “However, there is now a more general move in this direction for cash-starved consumers looking for somewhere to call home. And we can totally understand it. Finding inexpensive properties on the East or West Coasts is becoming more challenging by the year, and things will probably stay that way while the population rises.”
Stacking Side Hustles
Of course, just being clever isn’t always enough. A lot of younger couples and Gen Z individuals are having to take on additional work to meet their deposit requirements. These obligations take up a lot of their time but they are often worth the initial push to get the ball rolling.
Side hustles are now easier than ever to find, and most of them provide up to an extra $1,000 per month. That might not sound like much, but if a couple saves their paychecks every month, they could wind up with more than $24,000 by the end of year one, which isn’t bad and could be enough for some houses, depending on location.
“Using side hustles to pay off student loans is also part of the story,” explains Mortgage Quote. “A lot of young people are weighed down by these and don’t feel like they can take on extra debt until they’ve paid off most of these obligations.”
Of course, the amount of money that can be saved here is finite. But Gen Z is resourceful and looking for additional things they can do to make the magic happen for them financially.
Getting Free Money Perks
When it comes to buying property in 2025, there are also free money perks. Many Gen Z couples are receiving help to get on the property ladder from outside.
One of the ways they’re doing this is simply through the bank of “mom and dad.” Parents with disposable income are providing deposits for their children so they can start families and make their way forward in life.
The government is also getting in on the act. First-time programs like FHA loans allow borrowers, such as Gen Z couples, to make smaller downpayments, sometimes as little as 3.5% of the property value so they have somewhere reliable to live.
There are even state grants. Pennsylvania is offering up to $15,000 in some cases, and Florida residents can get grants in the $10,000 region, depending on their eligibility.
Using Sweat Equity
Then, there are the couples looking at using sweat equity to get the homes they want. Some of these are often derelict but extremely affordable, so all they require to turn around is work and the right knowledge.
In many cases, derelict properties have 50% discounts, simply because the pool of buyers willing to take them on is so small. With that said, the cost of turning them around is sometimes as little as 10%, meaning a 40% margin compared to similar homes of the same size and location.
“A lot of younger couples with time on their hands simply can’t ignore math when it’s like this,” explains Mortgage Quote. “The fact that derelict homes are so much cheaper to buy and renovate than purchasing new is a testament to the current state of the market.”
Of course, not all Gen Z couples will be able to get on the property ladder even using these tactics. The state of the financial system at the moment means prices are likely to remain elevated for some time. The key is to find ways to use mortgages and other types of credit to ensure properties are accessible for the people who need them, especially young, growing families. And that’s something that will only probably happen with significant financial reforms across the board. Having a good credit score can help with things like reducing high interest rates. But there’s more to it than that at the moment.
Featured Image Credit: Toa Heftiba; Unsplash; Thanks!
