Mortgage Rates Are Up—But Gen Z Isn’t Slowing Down

by Bren Brewer

Despite Texas mortgage rates hovering around 6.84% for a 30-year fixed loan as of mid-May 2025—one of the highest levels in recent years—Gen Z homebuyers are charging into the housing market, not retreating.

According to the May 2025 Mortgage Monitor by ICE Mortgage Technology:

🏡 First-time buyers now make up 54% of agency purchase lending—a record high
📉 The average first-time buyer age has dropped, with Gen Z (born 1997–2012) leading the charge
🌄 Many are skipping starter condos and buying single-family homes in suburban or semi-rural areas like Conroe, Willis, and Magnolia, TX

🔍 Why Is Gen Z Buying Homes in 2025?

You might expect high mortgage rates to scare off young buyers, but the opposite is happening. Gen Z buyers in Texas are entering the market now because of:

💼 Remote and hybrid work flexibility, allowing them to live outside of major metro areas
🏡 A desire for long-term stability and homeownership
📈 Concerns that home prices will continue rising
👨‍👩‍👧‍👦 Family support for down payments, helping them bypass renting altogether

These young buyers are thinking strategically—looking for homes with space, resale value, and future potential.

📍 Where Are Gen Z Buyers Looking? Try Conroe, Magnolia, and Willis

Montgomery County, TX has become a hotbed for Gen Z and first-time homebuyers thanks to:

Lower cost per square foot compared to urban markets
Strong job growth and connectivity to Houston via I-45 and SH 249
Popular communities like Artavia, Grand Central Park, and Lake Conroe-area neighborhoods
Access to good schools, parks, and new construction homes

If you’re a seller or builder in these areas, it’s time to pay attention.

🏠 What This Means for Home Sellers

This shift in buyer demographics presents an opportunity—but only if your home is priced right and marketed effectively.

Today’s buyers aren’t just families upgrading from a starter home—they’re young professionals ready to commit to a place they can grow into. To reach them, focus on:

Highlighting remote-work-friendly features (home office, extra bedrooms)
Emphasizing low-maintenance yards, updated appliances, and smart tech
Pricing competitively for the current interest rate environment
Marketing in the right channels—especially online, where Gen Z does their research

🤝 Need Help Reaching First-Time Buyers?

If you're thinking of selling a home in Conroe, Willis, or Magnolia, understanding what motivates today’s buyers is essential. From listing prep to targeted marketing, I’m here to help you build a strategy that connects with the next generation of homeowners.

📧 Email: bren@soprotx.com

📞 Call: 281-468-5145

🌐 Visit: www.brenbrewer.com