Rosalind Evans
As the landscape of the rental housing market evolves, Gen Zers stand at a crucial juncture. With the recent report from Redfin indicating a slight decline in rent prices, there’s a glimmer of hope for young adults aspiring to secure their place. Redfin’s chief economist, Daryl Fairweather, acknowledges this positive shift, but Jacob Channel from LendingTree cautions that significant challenges remain. Amidst these dynamics, building a robust credit profile emerges as a critical strategy for Gen Zers, especially considering the high percentage of Gen Zers living at home due to financial constraints.
The rental market, while showing signs of moderation, still poses hurdles. “It is good news for Gen Z that there are more rental options at more affordable prices,” remarked Fairweather. However, Channel adds a note of realism: “It’s probably still going to be hard to rent in a lot of instances, unfortunately.” This sentiment is echoed in the findings of Intuit Credit Karma, revealing that 31% of adult Gen Zers live with family due to affordability issues, and 27% of renting Gen Z adults struggle with current costs.
Building credit is thus not just beneficial but essential. Melissa Lambarena, a credit card expert at NerdWallet, advises, “Practice healthy habits overall with any line of credit that you may have.” She emphasizes responsible spending and repayment as key to establishing a solid credit history.
Understanding and utilizing effective credit-building strategies becomes crucial as Gen Z navigates the complexities of the current rental market. Leveraging bills, becoming an authorized user, and considering secured credit cards are practical steps toward this goal. With careful planning and informed choices, Gen Zers can enhance their prospects in the rental market, transitioning from living with parents or dreaming of their ideal apartment to securing a place they can call their own.
