Homeownership Benefits are in High Demand Among Gen Z

Interest rates are still increasing due to inflated housing prices, and the ability to own a home has become a harder dream for Americans to attain. But, employer assistance could be part of the homebuyer’s solution.

Back in 2020, 30% of houses were considered to have “unaffordable” mortgage or rent payments. According to the annual State of the Nation’s Housing report by Harvard University, the situation has only gotten worse. From March 2021 to March 2022 home prices increased another 20.6%, while rents rose 12%. Because of this, one out of five workers today has to delay purchasing a home because of their finances.

Now more than ever, employees are asking employers to help them with financing a house. Currently, 60% of workers expressed wanting their company to improve, expand or add onto homeownership assistance benefits. By expanding on existing financial wellness benefits programs, employers can help workers with their finances so they have more money to reserve for housing needs. Financial benefits such as automatic savings programs, student loan repayment and even financial coaches are all good steps to take in helping employees save more.

With 90% of Gen Zers wanting to become homeowners, many young workers are looking to work for companies that make buying a house more accessible. Similar to the way employees contribute to their 401(k), one option to help workers buy homes is for employers to match employees’ contributions for home ownership instead. Making homeowner assistance a permanent benefit for employees, especially the younger generation, might become the newest way to retain and attract talent.

For more information contact Eric Allen Kauk, Esq., LL.M. at (813)-203-0208 for guidance.