Homeownership education needs a reboot — and a new messenger 

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Ask a Gen Z homebuyer where they're getting their mortgage advice, and you're more likely to hear "YouTube" or "ChatGPT" than "loan officer." That fact alone should serve as a wake-up call to everyone in the real estate and mortgage industries.

The 2025 NextGen Homebuyer Report from FirstHome IQ and National MI, based on a survey of 1,000 aspiring homeowners aged 18-44, reveals a sobering truth: While 95% of respondents still aspire to homeownership, the majority believe now is "not a good time to buy." And worse, many are turning to unvetted — and often inaccurate — sources for guidance on one of the biggest financial decisions of their lives.

"We've got 40% of Gen Z going to social media for their financial education," FirstHome IQ Executive Director Kristin Messerli said. "And YouTube is still the No. 1 educational source for homebuying."

The TikTok-ification of mortgage advice is not inherently bad, but when consumers place more trust in influencers than industry professionals, that's a systemic failure.

Trust in loan officers has plummeted to just 19.5%, the report found, and real estate agents fare only marginally better, with just 1 in 3 respondents expressing confidence in their guidance. 

Educating — and showing up for — buyers

It wasn't always this way.

Messerli, a former social worker who's built a career at the intersection of housing and financial empowerment, founded FirstHome IQ with a clear mission: to bring scalable, accessible homeownership education to the communities that need it most.

But education is about more than worksheets and webinars — showing up matters, too.

"You don't need to be the same age as someone to be able to educate and reach them," Messerli said. "You just need to understand where they are and how to communicate to their needs."

For some professionals, that might mean short-form video content. For others, it could be leading buyer workshops at schools, community centers or even neighborhood restaurants. The point isn't to chase trends — it's to be visible, credible and approachable.

Many aspiring buyers think homeownership is 'just a dream'

Today's prospective buyers are entering the market with a complex mix of fear, trauma and financial misinformation. Many watched their parents lose wealth in the Great Recession, nearly 70% cite the high cost of living as a barrier to homeownership and more than half say they never received any formal financial education.

"One of the stats that really stuck with me was that 35% of respondents said homeownership was just a dream, not something they actually believed they could achieve," Messerli noted. "And 70% still think you need 10% to 20% down to buy a home. That's just not true."

Affordability concerns are meanwhile driving younger buyers toward fixer-uppers, house hacking, co-buying with friends or family and other alternative strategies.

Visibility is key to building trust

These buyers are navigating the process with little help from traditional institutions. When asked who they'd turn to for homebuying advice, Gen Z respondents ranked agents first, financial advisors second and loan officers last.

For Messerli, that misalignment signals both a challenge and an opportunity.

"Most of the loan officers in our Ambassador program are there because they care deeply about education," she said. "They're paying to be part of it so that schools can get free access to curriculum and materials. And they're doing it because they know that building trust with first-time buyers takes more than a business card and a rate quote."

Messerli sees real potential in partnerships between loan officers and agents, especially with first-time buyer education. FirstHome IQ is currently expanding its programming to better support agents who want to play a more active role in the education ecosystem, given that they "are still the first contact for many homebuyers."

The key is recognizing that digital strategies and local engagement aren't mutually exclusive — and the most effective professionals will do both.

"If social media isn't your thing, you don't have to become a TikTok influencer overnight," she said. "But you should at least have a presence online. And then show up physically in your community. Partner with schools. Host workshops. Be visible."

Agents: Know what you don't know

The education gap isn't limited to consumers. Many agents are unfamiliar with mortgage products, affordability programs or even the loan structuring basics — and that knowledge gap can limit their ability to support clients.

Messerli's advice? Refer early and often. "If you're an agent and you're working with first-time buyers, lean on an education-first loan officer. Your client will feel more confident, and they'll trust you more for bringing that resource to the table."

Combatting fear with strategies for success

There's one more player that needs to show up in the education conversation: the mortgage industry itself.

"I don't think we do nearly enough to control the narrative," Messerli said. "Most of what people see in the media is fear. High rates, low affordability, scary headlines. We have to be in those same channels sharing the real story — acknowledging the challenges, but also offering hope, strategies and tools."

That means embracing new platforms. Developing content that's accessible, digestible and shareable. Creating resources for teachers. Offering support to underserved communities. And yes, helping buyers understand how financial technology and shared equity models can unlock new paths to ownership.

Because the stakes are too high for silence.

If we don't meet the next generation of buyers where they are, someone else will. And chances are, that someone won't be bound by accuracy, ethics or fiduciary duty.

Coby Hakalir has been a leader in the mortgage industry for almost three decades. He currently leads the mortgage banking and mortgage tech division for T3 Sixty, one of real estate's most respected management consultancies, and resides in Northern California. (Note: Real Estate News is an editorially independent division of T3 Sixty.)