Why this study says Gen Z's chances of buying a home in Richmond are slim to none

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Posted at 5:22 PM, Jan 31, 2024
and last updated 2024-01-31 17:45:49-05

RICHMOND, Va. -- Richmond ranked as one of the worst cities in the United States for Gen Z to have a chance of owning a home, according to a new study.

Richmond ranked 91, nearly dead last, among the 100 major cities in the United States.

Point 2, a site that studies real estate trends, reported that Richmond carried a low Gen Z homeownership rate at just 1.5%, meaning the chances of anyone from that generation (born between 1997 and 2012) owning a home in Richmond are slim to none.


Did Richmond rank low in other categories?

Richmond did not rank very low in other categories concerning Gen Z homeownership.

The unemployment rate amongst Gen Z sits at just 9% in the River City.

Inventory in the city, the number of housing options available, is at 37.9, which is high and even better than some of the cities in the top 10 on the list.

Chief Economist for Virginia Realtors, Ryan Price, said older members of Gen Z, who are in their early to mid-20s, are typically just starting at the beginning of their careers.

"Your income levels are not going to be as high as someone that has perhaps been in that career that longer, like say a millennial, but they're also shopping for similar homes," Price said.

On average, a home is on the market in Richmond for 10 days, which is the lowest among the bottom 10 cities for Gen Z homeownership.

In regards to the Richmond housing market, Price said its competitiveness doesn't help those older Gen Z members become homeowners.

"There's below the supply of homes that are available, we're seeing prices continue to climb, month over month, year over year, and sellers are really getting above asking price, which is an indication of how competitive the market is," Price said.

Did other Virginia cities rank low as well?

Not necessarily.

Norfolk ranked the highest on the list in Virginia at 38, while Virginia Beach wasn't too far behind at 42. Arlington and Chesapeake both made the list at 65th and 69th, but the chances in those cities of owning a home as a member of Gen Z are still better than Richmond's.

However, Price said that he wouldn't suggest taking off to one of those Virginia cities just to buy a home.

"If you like where you are, then you can make it work," Price said.

Also, the low homebuying rate for Gen Z could be attributed to the fact that they are first-time homebuyers, and not just the year they were born.

"We're reframing it as a Gen Z problem," Price said. "It's really a first-time homebuyer problem, which includes millennials, as well as Gen Z. But really, it's the supply issue, I think, is what did move the needle the most."

Is it really that hard for Gen Z (or any first-time homeowner) to buy a house in Richmond? Email to share your thoughts

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