As members of the millennial and Generation Z cohorts enter their prime homebuying years, a lack of financial literacy and trust is emerging as a major barrier to housing access, according to FirstHome IQ’s newly released 2025 Impact Report.
The industry-led nonprofit’s findings reveal that confusion and uncertainty — rather than a lack of aspiration — are delaying homeownership and wealth creation for younger generations.
The report paints a stark picture: 93% of Millennials and Gen Z did not receive financial literacy education in school, just 7% can correctly identify the minimum downpayment required to buy a home, and just 20% trust lenders or real estate professionals to help them make informed decisions. As a result, more than half of young consumers are postponing major financial milestones, including purchasing a home.
For the housing industry, these gaps have meaningful consequences. Delayed homeownership can limit long-term wealth accumulation and exacerbate existing affordability and equity challenges. FirstHome IQ’s research suggests the issue is not reluctance to buy, but rather a lack of clarity and confidence in navigating the process.
“When borrowers are overwhelmed, confused, or uncertain, they delay decisions that could build wealth earlier in life,” said Dave Savage, chairman of the board of FirstHome IQ.
The 2025 Impact Report also outlines a unified, research-backed roadmap for addressing these challenges through education tailored to housing and homeownership. By equipping consumers and industry ambassadors with practical, trustworthy information, FirstHome IQ aims to strengthen confidence, rebuild trust, and create a clearer path to ownership.
“As FirstHome IQ Ambassadors lead with education, it strengthens client relationships and supports sustainable business growth,” said Kristin Messerli, executive director of FirstHome IQ. “Doing good and doing well can align, and the mortgage industry is demonstrating that leadership now.”
With housing affordability and access under continued pressure, the report positions education as a critical lever for unlocking future demand. By investing in financial and homebuyer education today, the housing industry can help turn hesitant renters into confident homeowners by supporting both generational wealth building and long-term market stability.
