Gen Z and the Dream of Homeownership: Adapting to a Challenging Market

Gen Z Homebuyers Face Big Challenges — But They’re Not Giving Up

According to a new survey from Realtor.com, nearly one in five Gen Z adults (ages 18–27) say that housing affordability is their top life concern. Rising home prices and higher mortgage rates have made buying a home feel out of reach for many in this generation—but their determination remains strong.

In fact, 82% of Gen Z respondents who already own or hope to own a home believe it’s harder for their generation to buy than it was for previous ones. Still, most haven’t given up:

• 67% say homeownership is an important lifetime goal.

• 69% view real estate as a key way to build wealth.

• 51% consider owning a home an essential part of the American dream.

As Danielle Hale, chief economist at Realtor.com, explains: “Gen Z knows affordability is a major hurdle, but they’re not giving up on the dream of owning a home. They’re adapting, focusing on career growth, saving early, and being realistic about what they can afford.”

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How Gen Z Is Saving and Adapting

About one-third of Gen Z adults interested in buying a home have already started saving for a down payment. On average, they expect to need roughly $54,500—less than 20% of the national median list price of $425,000, but higher than last year’s average U.S. down payment of $30,250.

To reach that goal, many are finding creative ways to boost their savings:

• 33% are taking or plan to take an additional job or side hustle.

• Others are considering relocating to more affordable areas, changing employers, or requesting raises.

Fewer are relying on higher-risk strategies like investing in cryptocurrency or borrowing from family.

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Balancing Career Goals and Homeownership

The survey also revealed a gap between feeling ready to buy and being financially prepared.

• 46% said they feel at least somewhat ready to purchase a home.

• Only 36% said they feel financially ready.

Many are focusing first on career advancement, which nearly half of respondents ranked as their top life milestone—before marriage, starting a family, or buying a home. Higher income remains the key motivator:

• 82% said a higher-paying job would make them more eager to become homeowners.

• 80% said their desire to buy would increase if they could afford it.

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What This Means for Future Homebuyers

Despite today’s affordability challenges, Gen Z’s persistence shows that the next generation of buyers is planning ahead and adapting early. They’re saving, building careers, and looking for opportunities to buy when the market aligns with their finances.

If you’re in the same position—working toward homeownership but unsure where to start—talking with a mortgage professional can help you understand your timeline, down payment options, and local programs designed for first-time buyers.

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Source: HousingWire

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.