Gen Z Struggles to Navigate High Housing Costs

Members of the Generation Z cohort want to become homeowners, but for many, affordability concerns continue to be a barrier. For those successfully managing to overcome these hurdles, nearly 90% say they underestimated the steep costs associated with homeownership. That’s according to a recent survey of more than 1,000 Gen Z Americans from insurance comparison platform Insurify.

High homeownership costs are only one piece of the puzzle for young Americans, many of whom are trying to juggle student loan debt along with other high costs of living. The survey found that 70% of Gen Zers said their student loans have prevented or slowed their home purchasing plans. However, 59% of Gen Zers believe the cost of living will be higher next year and that now is a better time to buy. Still, 24% say they’ll never be able to afford a home, which is up from 18% in 2024.

But the number of aspiring buyers fell 5% since 2024, when 79% said they planned to buy a home someday. A lack of savings and stubborn home prices are likely causing some in Gen Z to re-evaluate whether homeownership is realistic.

Getting discouraged by high home prices isn’t unique to Gen Z, but it’s increasingly common. About one-quarter of non-homeowners surveyed (24%) said they think they’ll never be able to afford a home — up from 18% last year — including 31% of those who make less than $50,000. The median home price is about $414,000, so a 10% down payment would amount to more than $40,000. But Insurify’s survey shows that only 8% of Gen Zers who don’t already own a home have $40,000 for a down payment.