Key Takeaways
- The percentage of Gen Z and millennial Americans who owned homes had been rising for years—but that’s stopped recently, according to new research.
- Gen Z and Millennials are being priced out of the homebuying experience due to high sale prices and mortgage rates. Meanwhile, there’s less inventory available.
Younger Americans are having trouble buying homes.
Despite many being at the age where they are getting married, starting families, and progressing in their careers, younger Americans are finding it harder to afford homes amid high prices and mortgage rates, according to a new report by Redfin.
Just over a quarter of Gen Z adults owned their home in 2024, flat from the two years prior, according to Redfin. Less than 55% of millennials owned their home last year, about flat from 2023. Before last year, the millennial homeownership rate rose each year since 2012, and homeownership rates for Gen Zers had increased every year since 2017 except for 2022.
Younger Americans are being priced out of homes, but also finding less inventory. Older adults are opting to stay in their homes and remodeling them instead of moving, leaving fewer homes on the market—especially in desirable areas, said the report.
Younger Americans also might feel less drawn to the idea of homeownership and more into the flexibility of renting or living with family, according to Redfin’s report. And while the costs of buying a home have risen, rent prices have stayed relatively flat.
“Homeownership is still a symbol of success and stability for many Americans, but the nation’s culture is shifting with the economic times,” Redfin Chief Economist Daryl Fairweather said in the report.
For today’s 27-year-olds, 33% own their homes, versus 40% of baby boomers when they were 27, according to Redfin.
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