Key Takeaways
The high housing market has made younger generations more anxious, but it hasn’t stopped them from buying homes. Younger generations are buying homes at a higher rate than older generations. While more young people are buying homes, many report regretting their purchase and having trouble paying their mortgage.
Younger Americans have expressed concerns about the financial challenges of homeownership, but that doesn’t stop them from owning homes at a higher rate than older generations.
Home prices have reached record highs and mortgage rates are hovering near 7%, making homeownership out of reach for people of all ages, leading the housing market to record the lowest number of contract signings since 2001 in May.
This is impacting the mindset of Gen Z, with 60% of people worried they won’t be able to own a home, according to a recent survey by Clever Real Estate. Half of Gen Zers cite high home prices, and about a third cite high interest rates as a reason they can’t own a home.
But the high housing market and bleak outlook haven’t deterred younger generations from buying homes: While older people still make up the majority of homeowners, homeownership rates for people under 45 have increased much more than for older people, according to Census Bureau data.
In general, homeownership rates have been rising over the past decade: According to the Census Bureau, the homeownership rate in 2023 is 65.9%, up from 65.1% a decade ago. However, when broken down by age, younger Americans are becoming homeowners faster than older Americans.
Although homeownership is on the rise among younger generations, post-purchase worries persist: More than two-thirds of Gen Z homeowners say they regret their purchase, and one-third say they’re struggling to make their mortgage payments.
