When it comes to homeownership, Gen Z is united in their concerns over affordability as 82% of those in Gen Z who own a home or hope to own a home think buying a home is harder for their generation compared to previous generations, according to a new survey from Realtor.com^®. In fact, 16% of Gen Z rate housing affordability as one of their highest concerns in life.

Despite those headwinds, our survey of 1,000 adults between the ages of 18-27 who currently own a home or hope to in the future, 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."

It's All About Money: Gen Z Prioritize Career Growth
For Gen Z, there is a divide between their readiness for homeownership in general compared to their financial readiness, where 46% of respondents feel at least somewhat ready to buy a house, yet only 36% think they are at least somewhat financially ready to buy a house. Many are prioritizing career advancement ahead of buying a house, getting married or having kids, which aligns with their attitudes around housing affordability. 49.5% rank advancing in 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 want to advance their career first compared to only 45% of Gen Z men surveyed. 23.7% of Gen Z men 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.

82% of respondents say that having a higher paying job would increase their desire to become homeowners and 80% say their desire would increase if they could afford it. Furthermore, 51% express high levels of concern about housing affordability in the future with nearly one in four (16%) rating housing affordability as one of their highest concerns in life. Only 10% have low or no concern about housing affordability.

Grinding for the Dream: Gen Z's Path to a Down Payment
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 down payment. 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 down payment, 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. 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 for a downpayment, respondents are not interested in making riskier stock or cryptobets, borrowing from parents or family, or taking on a roommate to help defer costs.

When Gen Z Buys, They're Focused on Practical Homes and Forever
For 33% of Gen Z, the most important aspect of a home is price, 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 two in five (40%) saying they would rather hold out and buy a "forever home." 30% plan to buy a starter home and work their way up and 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 and 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.