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Millennials vs. Gen-Z’s Approach to Homeownership

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David Brierton

David Brierton

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Millennials vs. Gen-Z’s Approach to Homeownership

Blog - Millennials, Gen-Z Buy Homes Differently

Millennials have become the largest home-buying group but wait longer to buy, starting at age 35. Gen-Z buy homes earlier, starting at age 25.

Purchasing a home marks a significant milestone for many Americans, yet younger generations like millennials and Generation Z face unique challenges on the path to homeownership. In the face of limited housing options and rising interest rates, these groups are adopting unconventional strategies to realize their homeownership dreams. Let’s explore how millennials and Gen-Zers are navigating the home-buying process differently.

1. Saving for Down Payments:

A major obstacle for both millennials and Gen-Zers is accumulating the necessary down payment. According to a recent Redfin survey, 34% cite saving for a down payment as their primary barrier to homeownership, alongside soaring home prices. While many are diligently saving, a significant portion resort to alternative means such as taking on second jobs. Additionally, a considerable number rely on financial assistance from family members, with 36% of both generations expecting cash gifts for their down payments.

2. Solo and Co-Buying:

Unlike previous generations where married couples dominated home purchases, millennials and Gen-Zers are embracing more diverse approaches. The trend of solo homebuyers is on the rise among younger cohorts, with 42% of millennials opting to purchase homes independently. Furthermore, there’s a growing inclination towards co-buying homes with friends or non-romantic partners, showcasing a departure from
traditional norms. Even as they enter the market, Gen-Zers are displaying similar tendencies, with a significant portion choosing to buy homes solo or with non-romantic partners. 

3. Generational Differences:

While millennials constitute the largest home-buying group, they tend to delay their purchases compared to previous generations, with the median home-buying age standing at 35 years old. In contrast, Gen-Zers are entering homeownership earlier, with a notable percentage purchasing homes by the age of 25. Moreover, millennials, being further along in their careers, often prioritize larger homes, whereas Gen-Zers, with lower
incomes and fresh out of college, gravitate towards smaller, more affordable properties that can potentially serve as investment opportunities.


In the face of formidable market conditions characterized by steep prices and interest rates, millennials and Gen-Zers are employing innovative strategies to achieve homeownership. Whether it involves seeking financial support or exploring non-traditional purchasing arrangements, these generations are determined to realize their homeownership aspirations, reaffirming the enduring appeal of homeownership despite the challenges posed by contemporary housing markets.


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