How Many Gen Z Own Homes? A Look at the Current Data

Generation Z, born between 1997 and 2012, represents a significant portion of the population, with its oldest members now in early adulthood. This demographic cohort is increasingly facing the complexities of the housing market, and understanding their homeownership patterns offers insights into broader economic trends. The ability of Gen Z to purchase homes is a topic of growing interest, reflecting current economic conditions and shifts in life milestones.

Gen Z Homeownership Statistics

In 2024, approximately 26.1% of adult Gen Zers owned a home, a rate consistent since 2022, indicating a flattening in their home acquisition momentum. For context, the overall homeownership rate for householders under 35 years old saw a decrease to 37.4% in the second quarter of 2024, down from 38.5% a year prior.

For instance, 32.6% of 27-year-old Gen Zers owned a home in 2024. This compares to 38.4% of Generation X and 40.5% of Baby Boomers when they were the same age, indicating a lag for current young adults. However, for those aged 24, Gen Z shows a higher homeownership rate at 27.8% in 2023, surpassing the 24.5% for Millennials and 23.5% for Gen X when they were 24. This earlier advantage for some Gen Z individuals can be attributed to purchasing homes during the period of historically low mortgage rates around 2020 and 2021.

However, this early lead does not extend to all age groups within Gen Z. For example, 26-year-old Gen Zers had a homeownership rate of 30% in 2023, which falls behind the 31% for Millennials, 32.5% for Gen X, and 35.6% for Baby Boomers at the same age. Overall data suggests that while some younger Gen Z individuals capitalized on specific market conditions, the generation as a whole faces greater challenges in achieving homeownership rates comparable to predecessors as they age into their late twenties.

Key Influences on Gen Z Homeownership

Several factors shape Gen Z homeownership prospects, often making property acquisition more challenging than for previous generations. Economic conditions play a substantial role, particularly the high cost of housing and elevated mortgage interest rates. Mortgage rates, around 3% in early 2022, increased to 6-7% by 2024, significantly impacting affordability. This rise, coupled with soaring home prices, pushed the typical monthly mortgage payment to a record $2,800 by spring 2024. Incomes have not kept pace with housing expenses, pricing many potential buyers out of the market.

Student loan debt represents another considerable burden, affecting Gen Z’s ability to save for a down payment and qualify for mortgages. Recent generations, including Gen Z, carry higher educational debt, directly impacting their financial capacity for homeownership. This debt often delays down payment savings, a crucial hurdle for first-time buyers. Entry-level salaries further compound the challenge of building substantial savings.

The evolving employment landscape offers both opportunities and constraints. While the flexibility of remote work has allowed some Gen Z individuals to consider homes in more affordable areas, concerns about job security also exist. For many, financial support from family is becoming an increasingly important avenue to homeownership. Some young buyers receive direct financial assistance for down payments or co-buy properties with family members. Additionally, a notable number of Gen Zers live rent-free with family, enabling them to save money that would otherwise go towards housing costs.

Delaying traditional life milestones, such as marriage and starting families, influences Gen Z housing decisions. These delays lead to different housing needs and priorities compared to earlier generations who pursued homeownership younger. For many, the current economic environment means waiting longer to buy a home, or opting for renting, becomes the most viable financial strategy.

Geographic Variations in Gen Z Homeownership

Gen Z homeownership rates exhibit considerable variation across different regions of the country, primarily driven by local market dynamics and the cost of living. Housing supply and demand differ significantly between metropolitan areas, suburban communities, and rural locations. This creates diverse entry points into the housing market for young buyers.

More affordable metro areas tend to show higher rates of Gen Z home purchases. Cities such as Indianapolis, St. Louis, Pittsburgh, Cleveland, and Detroit have seen a higher concentration of Gen Z homebuying activity. In these regions, the median property values for Gen Z purchases in 2023 ranged from approximately $165,000 to $285,000, making homeownership more attainable. The availability of lower-cost homes in these markets allows Gen Z buyers, who may be earning median incomes of around $60,000 to $80,000, to enter the market.

Conversely, expensive coastal cities and major metropolitan areas present significant barriers to entry due to prohibitively high housing costs. For example, the median property value in the San Francisco metro area for Gen Z purchases can exceed $1 million, making homeownership largely inaccessible for many. The rise of remote work opportunities provides some flexibility, allowing Gen Z individuals to work for companies located in high-cost areas while residing in more affordable regions. This geographic arbitrage helps some to overcome local affordability challenges. The general pattern suggests that a growing number of younger individuals are choosing to start their careers and establish residences in smaller, less expensive areas, where the dream of homeownership remains more within reach.