Even as you worry about the myth of millennials not buying homes, a new demographic is already moving in on this territory. Generation Z, or children born from 1995 onward, is already starting to buy houses.

According to a new TransUnion report, 14 million Generation Z consumers have some sort of credit balance in 2019.

The number of Generation Z consumers who took out a mortgage grew by 112 percent to 319,000 between 2018 and 2019. While much more millennials, or those born between 1981 and 1995 have mortgages (14.37 million), that number of those taking new ones out grew by only 12 percent.

Generation Zers are currently much more likely to have other forms of debt — student loans, auto loans and credit card debt are the most common form of debt for them. (In general, much larger numbers of people have credit card debt and auto loans than mortgages).

But they are still young and will be a major force for the market in the coming years. According to the study, 13 million new Generation Z consumers will become credit eligible and start taking out loans that include mortgages by 2022.

TransUnion

“Both the newest and oldest members of the credit-eligible Gen Z generation are beginning to enter the credit market for the very first time,” said Matt Komos, vice president of research and consulting at TransUnion, in a media statement.

And if you still do not feel millennials and Generation Z are not a serious market force. Consider this: Not one of the older generations — Generation X, baby boomers and the silent generation — saw an increase in the number of people taking out mortgages.

Generation X stayed stable at 23.76 million while baby boomers fell 4 percent to 25.34 million. The number of mortgages taken out by the silent generation, or those born between 1925 and 1945, fell 9 percent to 4.5 million.

“From a generational perspective, Gen Z consumers accounted for two percent of total originations,” reads the report. “Gen Z may soon account for a larger share of mortgage loan growth, however, as the median age of home buyers is 28, and the oldest individuals in this generation are currently 24.”

Email Veronika Bondarenko

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×