LAS VEGAS (KLAS) — Buying a home is the American dream, but for some, that dream seems far out of reach. That’s especially true for members of Generation Z, who have faced a global pandemic, two-decade-high mortgage rates and skyrocketing inflation all while trying to start their lives.
But there is hope, which may be found in Southern Nevada.
A recent report by Point2Homes revealed among all major U.S. cities, North Las Vegas has the highest young homeownership rate with almost 40% of Gen Z householders owning their homes.
“In one word, affordability,” said Doug Ressler, manager of Business Intelligence, a division of Yardi Systems that manages property in the real estate market. “The average base price for a new home in North Las Vegas is notably lower than in other parts of the Las Vegas valley, making it more accessible for first-time buyers and young professionals.”
North Las Vegas also has the lowest median sale price in the state of Nevada. Despite this, home prices are still eight times the median income of Gen Zers. In Las Vegas, homes are seven times their median income.
Meanwhile, Henderson and Reno offer less hope with home prices at 12 and 14 times Gen Zers’ median income. The numbers are staggering, especially as homebuyers are encouraged to purchase homes no more than three times their annual income.
Still, real estate experts say when compared to high-cost states like California, where it is nearly impossible for people under the age of 25 to buy a home, buying a home in Southern Nevada is a possibility for Gen Z, although with still a hefty price tag.
Tips for purchasing a home:
- Save for a down payment over time.
- Explore ways to increase your income, whether that’s through career advancement, side hustles or freelance work.
- Improve your credit score, which could lead to a better mortgage term and save you money in the long run.
- Research local and federal first-time homebuyer programs. Some programs offer down-payment assistance.
- Consider multifamily properties.
- Shop and compare interest rates from different lenders. Even a small difference can make a big monthly impact.
- Be prepared to negotiate in a competitive market.
