The dream of owning a home is slipping further from the grasp of young Americans. A new report from Redfin reveals that homeownership rates for Gen Z and millennials flatlined in 2024, a stark contrast to the steady gains of previous years — and a troubling sign as housing costs remain sky-high.
Just 26.1% of Gen Zers owned their home last year, barely moving from 2023’s 26.3%. Millennials didn’t fare much better: 54.9% owned homes in 2024, up just a hair from 54.8% the year before. For both generations, this stall marks a break in upward trends that had persisted for years.
Meanwhile, older Americans kept inching ahead. Gen X saw a modest bump to 72.9%, and nearly 80% of baby boomers own their homes — typical progress for those in later life stages.
Why are young homebuyers stuck? The answer, in short: costs are outpacing incomes. Since mortgage rates began rising in 2022 — jumping from about 3% to 7% — housing affordability has plummeted. In spring 2024, the typical monthly payment for a new home hit a record $2,800. Even as wages ticked up, they couldn’t keep pace with housing expenses.
And for many young people, it’s not just about money — it’s about access. Low housing inventory, especially in hot neighborhoods, means fewer chances to buy. Boomers staying put aren’t helping matters, and renting has become a more stable, affordable choice for many.
“Homeownership is still a symbol of success and stability for many Americans, but the nation’s culture is shifting with the economic times,” said Redfin Chief Economist Daryl Fairweather. “Some young people are placing less emphasis on owning their own home because they’re prioritizing flexibility, while others continue renting because they can’t afford to buy.”
Young Adults Are Falling Behind Their Parents
Today’s 27-year-olds are falling behind where their parents were at the same age:
- 32.6% of Gen Z 27-year-olds owned a home in 2024
- Compared to 38.4% of Gen X and 40.5% of baby boomers at age 27
It’s the same story with millennials in their mid-30s — 56% of 35-year-olds owned homes in 2024, versus 59.4% of Gen X and 61.5% of boomers at that age.
What’s different now? Delayed life milestones play a big role. The average age of a first-time mother is now 27.5, up from 24.9 two decades ago. Many young adults are also choosing remote work, travel, and short-term living over long-term commitments like homeownership.
Fairweather adds, “Buying a home is still typically a good financial investment, but for young people who don’t have the desire or means to do so, there are other viable investments that, unlike buying a home, don’t require a huge down payment. Those people might consider investing in the stock market, their own business, or education.”
