5 Creative Ways Gen Zers Are Affording High Housing Costs (and How You Can Too)

Generations post-baby boomers often lament the fact that there is no way for them to purchase a home — not with the cost of houses, interest rates , crippling loan debt and staggered wages holding them back. These complaints are common for Gen Xers and millennials, but Gen Zers seem to have found a few creative solutions to making homeownership not just a dream but a reality.

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These are a few creative ways that Gen Zers are affording high housing costs and how you can use some of their tips as creative hacks to get in on a piece of property yourself, no matter what year you happened to be born in .

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House Hacking

For the past few decades, hackers have been relegated primarily to the world of computers, but not anymore. Gen Z is doing something no other generation has done — “house hacking.”

“A popular option is house hacking, where a group of friends pool money to buy an investment property together,” said David J. Greiner, Esq., a real estate attorney with Greiner Law Corp. “They live in the home, with each person paying less rent than average, then sell the home and split the profits.”

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Buying Fixer-Uppers

While this might not be a completely new idea on Gen Z’s part, they are utilizing it to their advantage, taking properties that are in need of a bit of TLC and doing it DIY style.

“Younger buyers are willing to take on fixer-uppers,” said Daniel Rivera, owner of Proactive Property Management . “They purchase dilapidated homes, remodel affordably, then either sell at a profit or keep as an affordable place to live. I’ve seen Gen Z transform homes for under $20,000, adding $50,000-plus in value.”

“Gen Z are handy and tech-savvy, letting them renovate homes themselves or find cheap contractors on apps,” Greiner explained. “They buy a run-down place, remodel it on a budget, then either sell at a profit or keep [it] as an affordable home.”

Crowdfunding

Crowdfunding is not just for raising money to make an independent movie or help pay your medical bills. It’s a tool that Gen Zers have harnessed in order to become homebuyers.

“Crowdfunding down payments through friends/family or even strangers on sites like GoFundMe is also common,” Greiner said. “People see the benefit of helping a young person become a homeowner. In return, donors get small gifts or a chance to invest in the property.”

“Pooling funds with friends or family to invest in rental properties is popular,” Rivera said. “Each pays below market rent, building equity, then sells and splits the profits. Crowdfunding down payments through social media in exchange for small gifts or investment opportunities is also common.”

Getting In On Up-and-Coming Neighborhoods

The key to Gen Z’s success is buying before an area fully gentrifies, according to Rivera.

“Locking in a lower cost basis in an up-and-coming neighborhood is how Gen Z can afford homes,” Rivera explained.

According to Greiner, Gen Zers “use apps to find homes under list price in up-and-coming neighborhoods. Buying before an area fully gentrifies lets them lock in a lower cost basis.”

Using First-Time Homebuying Programs

Using first-time homebuying programs is another solution that Gen Z did not necessarily come up with from scratch. That being said, this age group is researching, using and reaping the benefits from such programs all around the country.

“Many leverage down payment assistance programs, taking out low down payment mortgages that only require 3%-3.5% down,” Rivera said.

“Many Gen Z take advantage of first-time homebuyer programs offering low down payments, like FHA loans requiring just 3.5% down,” Greiner said.

It’s no secret that the housing market can be difficult, but Gen Zers are finding ways to make it work. “They’re open to house hacking with roommates or renting out rooms, using the income to pay down the mortgage,” Rivera said. “With creativity and hard work, Gen Z are overcoming affordability challenges.”

This article originally appeared on GOBankingRates.com : 5 Creative Ways Gen Zers Are Affording High Housing Costs (and How You Can Too)