Homeownership among millennials and Gen Z has been a hot topic as many find the world of homebuying to be a mystery. In honor of June being National Homeownership Month, KB Home wants to help educate the next generation of homeowners through in-person events, online content, and new data. In a recent survey, KB Home found that purchasing a home is heavily on the minds of millennials and Gen Z despite the uncertainty of the process and myths about required down payment and interest rates.

The survey asked an array of Americans, from Gen Z to baby boomers, about how important homeownership is, what drives their homebuying decisions, and what they know about the homebuying process. According to the study, four in five American adults believe that owning a home is an essential milestone but are discouraged by the process overall.

Americans Want To Own a Home (Still)

Despite the economy, layoffs, and uncertainty of the housing market, Americans still have a goal of buying a home. In addition to most of the participants believing that homeownership is an essential life milestone, 40% of those surveyed have homeownership on their minds at least once a week. Of those forty percent, 62% were Gen Z-ers, and 55% were millennials. Homeownership is so important to those surveyed that about 58% of participants said they would spend less on nonessential items so that they could save on a downpayment for a home.

Respondents shared that privacy, long-term financial benefits, and a place to make memories were their top reasons for wanting to own a home.

Buying a Home Is Exciting But Also Anxiety-Inducing

Over half of those surveyed shared that they feel like they are in a worse position to purchase a home than prior generations. Most participants cite finances as being the aspect of home buying that makes them the most nervous. Other reasons are being able to find the right home and the right partner to purchase a house with.

Myths and Mysteries About Buying a Home

The survey reveals that most Americans have a poor understanding of the homebuying process. Only around half of the participants knew the meaning of terms such as “APR” or “PMI.” Aspects like the minimum down payment or that someone can qualify for a mortgage with a credit score in the 500s were commonly unknown.

One of the most common myths is that mortgage rates are currently at an all-time high. The truth is that the highest rates on record were in 1981, at 18.6%, much higher than today’s.

Learn more about how KB Home is helping homebuyers this month and beyond by visiting their website.