Realtor.com recently polled 1,000 Gen Z American adults (ages 18-27) regarding pursuit of the American dream of homeownership. The study found that Gen Z is united in their concerns over affordability, as 82% of those Gen Z’ers polled who own a home or hope to own a home think buying a home is harder for their generation compared to previous generations. In terms of overall housing affordability, 16% of those Gen Z’ers polled found housing affordability as one of their highest concerns in life.
And despite the current market headwinds, the survey found that Gen Z respondents value homeownership, with 67% of respondents saying that homeownership is a somewhat or very important lifetime goal of theirs, 69% agreeing that real estate is an opportunity to generate wealth, and 51% thinking it's a somewhat or very important part of the American dream.
"Gen Z has grown up during a time of rapid change in the housing market, and they're approaching homeownership with clear eyes," said Danielle Hale, chief economist at Realtor.com. "They know affordability is a major hurdle, but they're not giving up on the dream of owning a home. Instead, they're adapting, focusing on career growth, saving early, and being realistic about what they can afford. That determination and flexibility will serve them well as the market evolves."
Gen Z Prioritizing Career Growth
For Gen Z, there is a divide between their readiness for homeownership in general compared to overall financial readiness, as 46% of respondents feel at least somewhat ready to buy a house, yet only 36% feel they are at least somewhat financially ready to buy a house.
Many of those polled are prioritizing career advancement ahead of buying a house, getting married or having kids, which aligns with their attitudes around housing affordability. Nearly half (49.5%) of those polled ranked advancing in their career first in terms of milestones they hope to accomplish. For Gen Z respondents, when asked about milestones, they want to find advancements in their career followed by buying a house, then getting married and lastly having kids.
In one of the few gender divides, 52% of Gen Z women surveyed seek to advance their career first, compared to 45% of Gen Z males surveyed.
Nearly one-fourth (23.7%) of Gen Z men polled ranked buying a house as their first milestone compared to only 19.4% of Gen Z women. While pop culture narratives often portray the marriage-‐mindset of young women, Gen Z women and men are equally likely to say they're prioritizing marriage before buying a home.
Eighty-two percent of respondents said that having a higher paying job would increase their desire to become homeowners, while 80% said their desire would increase if they could afford it. Nearly half (51%) expressed high levels of concern about housing affordability in the future, as 16% rated housing affordability as one of their greatest concerns in life. Only 10% polled had low or no concern about housing affordability.
Downpayments Pave the Way
Nearly three-quarters (73%) of all respondents have started to save for a downpayment. Gen Z respondents predict needing, on average, $54,546 for a downpayment. This is less than 20% of the national median list price, which would be $85,000 for a home listed at $425,000, but is far more than the average downpayment of $30,250 (latest available data representing Q4 2024).
When looking at how Gen Z are saving or are planning to save for a downpayment on a home, survey respondents are interested in dependable wealth growing or cost-cutting measures like taking on an additional job or side hustle, changing where they work, moving to a more affordable housing market, or asking for a raise.
Nearly one-third (33%) of those surveyed have or are currently taking on an additional job or side hustle to save for a downpayment. In terms of saving, respondents are not interested in making riskier stock or crypto bets, borrowing from parents or family, or taking on a roommate to help defer costs.
Types of Homes Gen Z Are Targeting
For 33% of Gen Z, the most important aspect of a home is the price point, followed by size (18.5%), and location (17.9%) and they are realistic in their expectations about the size of house with the largest cohort (44.5%) of Gen Z wanting a three bedroom house.
Interestingly Gen-Z'ers are holding out for a forever home, with 40% of those polled saying they would rather hold out and buy a "forever home." Nearly one-third (30%) plan to buy a starter home and work their way up, while only 17% are holding out for a family home to be passed down.
While 62.2% of Gen Z see homeownership as a long-term financial investment, when thinking specifically about purchasing a home, short-term financial investment opportunities wane in popularity. For example, only 9.9% of Gen-Z are planning to buy a home as an investment property and rent somewhere else, while only 10.5% rank the ability to rent the house and turn a profit as the most important aspect of a home they would consider buying.
