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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.
- Due to high mortgage rates and sale price, Gen Z and Millennials cannot afford to buy a home. Meanwhile, there's less inventory available.
Younger Americans are having difficulty buying homes.
Redfin released a report that shows that young Americans are having a hard time affording homes because of high prices and mortgage interest rates.
Redfin reports that just over a quarter Gen Z adults own their homes in 2024. This figure is flat compared to the two previous years. In 2018, less than 55% millennials had their own home, a similar percentage to 2023. The millennial homeownership rate had risen every year since 2012 and the homeownership rates of Gen Zers have increased every year except 2022.
The price of housing is increasing for younger Americans, but there are also fewer homes available. 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. Rent prices have remained relatively flat, even though the cost of purchasing a home has risen.
Redfin Chief Economicist Daryl Fairweather stated in the report that “Homeownership remains a symbol of stability and success for many Americans but the culture is changing with the economic times.”
Redfin says that today’s 27-year olds own 33% of their homes compared to 40% when the baby boomers were 27.
