6 Creative Ways Millennials & Gen Z Are Hacking The Housing Market

1. The Rise of DINKs

There has been a rise of DINKs, for instance, which refers to "dual income, no kids," or couples who both have jobs and are actively choosing not to have children. Why? One major factor is the exorbitant price of raising a child from birth through age 17, which, according to the economic think tank Brookings Institution, costs an estimated $310,605.

Aside from ditching dreams of starting a family, the goal of buying a home, which was once much more achievable for older generations, has become a major struggle in today's economy. So, high mortgage rates, low real estate inventory, and heightened property costs have pushed Gen Zers and Millennials to get creative if they want to become homeowners.

New data from the BMO Real Financial Progress Index, recently released by BMO Financial Group, shows that 66 percent of Americans consider buying a home a major life goal. Yet, 61 percent admitted to feeling less confident that they'll ever purchase their own property in their lifetime as opposed to five years ago. Plenty of Gen Zers and Millennials who don't yet own homes, specifically 63 percent and 67 percent, respectively, are also envious of their peers who do.

As of now, 69 percent of Gen Zers and 74 percent of Millennials who are currently renting plan to wait for interest rates to decrease before they decide whether or not to buy a home.

2. Relying On Family

This begs the question: how is anyone able to set their stake in the American Dream? Well, the BMO data suggests young adults are using unconventional methods to "hack" the housing market.

Most notably, more than half of Gen Zers (60 percent) and Millennials (57 percent) who already own a home revealed that it wouldn't have been possible without financial assistance from family. Meanwhile, non-homeowners shared the other unorthodox methods they'd be open to in order to make their dream come true.

3. Co-Buying With Friends

There’s something appealing about buying with friends or renting out part of your place to start building equity before settling down. Instead of renting with a roommate, 57 percent of Gen Zers and 54 percent of Millennials actually reported they'd be open to "co-buying," or purchasing a property with friends or family.

4. Buying A Fixer Upper

Sweat equity is in. In fact, 63 percent of Gen Z and 65 percent of Millennials say they’re open to buying fixer-uppers. It’s a smart way to snag a home at a lower price, then tackle repairs on your own timeline — all while saving on interest in the long run. Bonus: You get to choose the fixtures and finishes you love.

5. Relocating To More Affordable Markets

Additionally, 56 percent of Gen Zers and 63 percent of Millennials who don't own a home claimed they'd be willing to relocate to another state or country in order to afford one.

6. Tapping Into 401K

Perhaps most surprising, though, is the fact that 45 percent of Gen Zers who don't own a home intend to use part of their 401(k)s to fund a down payment. Plus, 55 percent of Gen Z homeowners anticipate having to continue paying off their mortgage after retirement.

Still, according to Scott Anderson, Chief U.S. Economist at BMO, the state of the market can shift rapidly, and preparing early is never a bad idea.

"The financial hurdles to owning a home have rarely been higher, especially for young households that don't yet have their foot in the door. Poor housing affordability, limited inventory of existing homes, and rising interest rates make finding the right home that fits your budget a challenging endeavor," he explained.

The good news? "Economic and financial conditions can change quickly, so it makes sense to start planning today. With the right conditions and early planning, younger Americans will likely be able to attain their goal of homeownership."