Affordability Concerns Continue to Keep Generation Z Out of the Housing Market

In a recent survey of Gen Z adults, nearly half of all respondents reported feeling ready to buy a home, but only 36% say they are financially prepared to do so

Oct. 16, 2025

2 min read

Young homebuyers speak to real estate agent — Gen Zers continue to struggle with housing affordability, but purchasing a home still remains a major life goal for most young buyers.

Most members of the Generation Z cohort want to buy a home, but affordability challenges remain a major hurdle. A recent survey of 1,000 Gen Z adults by housing market platform Realtor.com shows that one in five respondents say housing affordability is their top concern right now.

Even so, the dream of homeownership is not dead. Of those surveyed, 67% of Gen Zers consider homeownership a "somewhat or very important lifetime goal of theirs," and 69% believe buying real estate is a chance to build wealth. However, there is a divide between Gen Z’s eagerness for homeownership and their financial readiness to do so. According to the report, 46% of respondents feel at least somewhat ready to buy a house, but only 36% believe they are at least somewhat financially ready to buy a house.

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.
- Danielle Hale, chief economist at Realtor.com

Despite a desire for homeownership, actual savings aren’t lining up with the amount of money needed for a down payment

Only about one third of those surveyed say they have started saving for a down payment, but the amount most Gen Zers say they're planning on saving does not equate to the 20% down payment for the national median priced home. Most survey respondents say they would like to save $54,546 for a down payment, while 20% down for a median-priced home would be $85,000. Still, Gen Z is determined, with 62.2% who say homeownership is a worth-while financial investment.

In hopes of building more savings, Gen Z is prioritizing career growth

To get ahead of their savings, many of those surveyed say they are prioritizing their careers, rather than buying a home, getting married, or having children. Nearly half of respondents ranked advancing in their career first in terms of the life milestones they hope to accomplish.

Gen Z isn't the only generation struggling with housing affordability

Nearly Half of Young People Need Help to Afford a Home: An increased number of both Gen Zers and Millennials say they are getting help from friends and family to purchase a home.
Share of Cost-Burdened Households Grows Among Older Generations: A recent report shows that about 12.4 million older households are considered cost-burdened.