To achieve homeownership, Gen Zers may need to rethink their spending habits. Cutbacks on daily luxuries like Starbucks coffee and opting for public transport over rideshares could help, suggests the CEO of the largest real estate firm in the U.S.
Pamela Liebman, who heads the Corcoran Group in Manhattan, pointed out that today’s younger generations are facing challenges similar to those their parents and grandparents encountered, particularly in New York.
In a conversation with Fortune, she mentioned that financially constrained young people might be able to improve their chances of homeownership by adjusting how they handle their finances.
“Stop buying Starbucks coffee. Essentially, reduce spending on unnecessary items,” Liebman advised. “It’s remarkable how quickly that small savings can accumulate,” she remarked.
However, Gen Z doesn’t seem too hopeful. Research indicates that while 90% of individuals born after the late 1990s aspire to own a home, 62% doubt they will achieve it.
Liebman also encouraged reliance on the subway instead of using rideshare services like Uber.
“When you see people taking Uber, they’re also spending on coffee, dining out, and unnecessary outings. Those expenses add up,” she commented.
She added that choosing dinner clubs could be a way to manage costs better).
“It’s common to gather at someone’s home for a meal, which keeps cooking responsibilities shared,” Liebman noted. “Young folks today enjoy cooking. Personally, I haven’t cooked in decades, but they seem to love it.”
Even with these tips, the task of buying property in Manhattan remains daunting. As of the third quarter of this year, the median property price in Manhattan was reported at $1.2 million, with an average nearing $2 million.
There’s a bit of relief in the suburbs, but not significantly. The median price for properties in Brooklyn was around $1.05 million, with an average of $1.4 million.
For those in Gen Z and younger millennials, Queens may be the best option, with the median sales price being $730,000 and the average just over $794,000.
Liebman, who began her career at Corcoran Group as a real estate agent in 1984, has advanced to her current leadership role.
The company has not publicly disclosed her salary; however, reports suggest leading real estate executives in New York typically earn between $400,000 and $3 million annually.
Liebman expressed that securing a home is still as challenging as it has been for many years.
“It’s just as hard,” she stated.
Looking back, she remarked that it was possibly more challenging during earlier years due to less populated areas.
Young buyers today have more appealing neighborhoods to choose from compared to previous generations. “In the ’80s, places like the Meatpacking District weren’t exactly sought after,” she reflected.
“Back then, desirable neighborhoods were confined to a few places. Nowadays, there are significantly more options available,” she concluded.
Even so, finding a great rental or initial home remains a tough endeavor.
The Post has reached out to Corcoran Group for additional comments.
