Members of Gen Z need to curb their spending habits by giving up on Starbucks coffee and taking mass transit instead of Uber if they want to buy a home, says the chief executive of one of the nation\u2019s largest realtors.<\/p>\n
The Gen Z and millennial cohorts are experiencing difficulties that are no different from those of their parents and grandparents \u2014 particularly in New York \u2014 according to Pamela Liebman, CEO of Manhattan-based Corcoran Group.<\/p>\n
She told Fortune<\/a> that cash-strapped youths could make some simple changes in their spending to make home ownership work.<\/p>\n Pamela Liebman, CEO of Manhattan-based Corcoran Group, has some advice for Gen Z and millennials who want to buy a home. Bloomberg via Getty Images<\/p>\n \u201cStop buying\u00a0Starbucks coffee. I mean, stop spending money on things that are not necessary,\u201d Liebman told Fortune last week.<\/p>\n \u201cIt\u2019s tremendous how fast that little nest egg can add up,\u201d she added.<\/p>\n Gen Z doesn\u2019t seem so optimistic. While 90% of those born in the late 1990s and beyond say they hope to own a home someday, 62% believe that will not actually happen, according to surveys.<\/a><\/p>\n Still, Gen Z members and millennials should also rely on the subway instead of hailing rides on apps like Uber, Liebman advised.<\/p>\n \u201cIf you look at people who are taking an Uber instead of the subway, they\u2019re buying their coffee, they\u2019re buying their breakfast out, they\u2019re spending money on things that are not necessary, they\u2019re going out with their friends three nights a week, spending money on alcohol, food \u2026\u00a0 these things definitely start adding up,\u201d she said.<\/p>\n Would-be homebuyers need to give up on that cup of coffee from Starbucks, according to Liebman. ManuPadilla \u2013 stock.adobe.com<\/p>\n \u201cThe subway is definitely cheaper than an Uber.\u201d<\/p>\n Liebman suggested another way to avoid unnecessary expenses \u2014 dinner clubs.<\/p>\n \u201cThree nights a week, they\u2019ll go to someone\u2019s house, and they\u2019re in charge of the cooking,\u201d Liebman said.<\/p>\n \u201cYoung people now seemingly like to cook. I haven\u2019t cooked in 30 years, but they love it.\u201d\u00a0<\/p>\n Even with those cash-saving tips, buying property in Manhattan is still a heavy lift.<\/p>\n The median price for a Manhattan property was $1.2 million for the third quarter of this year, according to a report by Miller Samuel and Douglas Elliman<\/a>, while the average price of a home in Manhattan this past quarter was just under $2 million.<\/p>\n The outer boroughs provide some relief, but not by much. The median sales price of a property in Brooklyn was $1.05 million<\/a>. The average sales price stood at $1.4 million.<\/p>\n Liebman also recommends that youngsters take the subway instead of hailing an Uber. Paul Martinka<\/p>\n The Gen Z and millennial cadres\u2019 best bet may be to purchase property in Queens, where the median sales price was $730,000 and the average came to $794,621 in the third quarter of this year, according to the Elliman Report.<\/a><\/p>\n Liebman first joined Corcoran Group as a realtor at the age of 23 in 1984, working her way up the corporate ladder to become the chief executive.<\/p>\n \t\t\t\t\t\t\tCharlie Gasparino has his finger on the pulse of where business, politics and finance meet\t\t\t\t\t\t<\/p>\n \n\t\t\t\t\t\t\tSign up to receive On The Money by Charlie Gasparino in your inbox every Thursday.\t\t\t\t\t\t<\/p>\n \t\t\t\t\t\tThanks for signing up!\n\t\t\t\t<\/p>\n