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Gen Zers and Millennials See Homeownership as an Impossible Goal

Illustration depicting a woman unsure of her future as a homeowner

Money, Getty Images

Americans who don't already own homes are deeply discouraged about their chances of overcoming the obstacles to homeownership. Among non-homeowners, 53% of people say that "owning a home will never be financially affordable," according to new survey data from life insurance company Northwestern Mutual.

While Northwestern Mutual doesn't report how homeowner sentiment in 2025 compares to previous years, other studies confirm that affordability has worsened for first-time buyers.

The National Association of Realtors reported in November that the typical age of a homebuyer had increased to 56, rising from age 49 the year before. The age of the typical first-time homebuyer was 38, up from 35 in 2023. The climbing age of homebuyers underscores the fact that younger Americans are having a difficult time competing in the market, as they typically have less access to the capital needed to buy a house.

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The costs have simply gone up too much, especially for Gen Zers and millennials. According to Realtor.com, the median list price in February was $412,000, which is up 39.2% since February 2019. The price per square foot is up even more: 54.8%.

While mortgage rates have decreased since peaking above 7% in mid-January, the average rate for a 30-year fixed-rate was 6.65% for the week ending Thursday, which is still high enough to sideline many would-be buyers. And with inflation still above the Federal Reserve's target rate of 2%, some officials are saying that interest rates cuts could be on hold until at least the summer. That means high mortgages rates could persist.

On top of housing affordability issues, households say their budgets are being challenged by inflation — the No. 1 financial concern for most people — making it harder to save, according to Northwestern Mutual.

All of these factors are contributing to the despair among non-homeowners. The life insurance company's poll found that people say owning a home is not an affordable goal because:

They don't have enough saved for a down payment (64%)
Mortgage rates are too high (48%)
The housing market is too competitive (43%)

Gen Zers who do not own homes are slightly more optimistic than older non-homeowners about their chances. While 58% of those millennials say homeownership is not an affordable goal, the percentage is lower (49%) for Gen Z non-homeowners.

"When it comes to whether people believe they can afford to own a home, age is a big factor," John Roberts, chief field officer at Northwestern Mutual, said in a news release. "Gen Zers are still young and have more time on their side to get to a place where home ownership feels attainable."

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