--- title: 'The Wild Housing Market Is Scaring Young People Away From Buying Homes: Survey' description: More people say they are less likely to buy homes as prices rise. Millennials are especially unlikely to buy because of the housing market. authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true published: '2022-06-02T19:25:14.000Z' modified: '2024-01-10T17:31:52.000Z' section: Housing tags: - home prices - Millennials - News word_count: 494 canonical: https://money.com/millennials-less-likely-buy-homes-survey/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Drawing depicting the Drake meme gesturing "no" to buying an expensive house](https://img.money.com/2022/06/News-Millennials-GenZ-not-buying-houses.jpg?crop=0px%2C208px%2C2880px%2C1620px&quality=85) The red-hot housing market is making it especially unlikely for younger Americans to buy homes anytime soon. A new survey by Money and Morning Consult, a decision intelligence company, found that 48% of Gen Z (those born between 1997 and 2012) and 44% of millennials (born between 1981 and 1996) say they are less likely to [buy a home](https://money.com/want-to-buy-a-home-starting-tips/) given the state of the housing market over the last two years. That’s compared to 30% of baby boomers and 38% of people overall. Only about one-quarter of millennial and Gen Z respondents said that the state of today's housing market actually makes them *more likely* to [buy a home](https://money.com/first-time-homebuyer-programs/), while the rest replied that they do not have plans to buy at all in the near future. The pandemic-era real estate market has seen prices spike [more than 20%](https://money.com/when-will-home-prices-fall/) thanks to a tremendous surge in demand as many Americans left expensive cities in search of more space — often in [warmer, sunnier locations](https://money.com/cities-home-prices-rose-20-percent/) — amid the shift to flexible [remote work](https://money.com/reason-high-home-prices-remote-work/) policies. A shortage of inventory and an ongoing supply chain crisis has exacerbated the crunch — and the competition. And as [mortgage rates](https://money.com/current-mortgage-rates/) rose this spring, [homeownership only got pricier](https://money.com/rising-costs-homeownership-taxes-insurance-tips/). ## Millennials and Gen Z struggle to buy homes The affordability crisis has been especially severe for millennials, a group that now comprises the [largest share of homebuyers](https://www.nar.realtor/newsroom/nar-report-shows-share-of-millennial-home-buyers-continues-to-rise#:~:text=Key%20Highlights,suburban%20areas%20and%20small%20towns.). The supply of [affordable starter homes](https://money.com/new-home-sales-price-300k-disappearing/) is dwindling, and with inflation running above 8%, saving for a [down payment](https://money.com/years-to-save-for-house-down-payment-rising/) is [more challenging](https://money.com/rising-home-prices-down-payments-housing-affordability/) now than in years past. A recent [report](https://www.apartmentlist.com/research/millennial-homeownership-2022) from Apartment List, a rental platform, found that two-thirds of aspiring millennial homebuyers had nothing whatsoever saved for a down payment in 2021. In a buying climate where [bidding wars](https://money.com/cities-with-most-bidding-wars-homes/) are commonplace and more than half of homes are selling above their listing prices, younger buyers with fewer assets are struggling to compete with older, wealthier buyers. This ultra-competitive market has forced buyers to make decisions quickly, and that’s leading to regrets. A January [study](https://www.realestatewitch.com/2022-millennial-home-buyer-report/#regrets) from Real Estate Witch found that 82% of millennial homeowners have at least one significant regret about the house they purchased. Of that group, 26% said they regret that their mortgage was too expensive and 30% regret the upkeep costs too much. It’s no wonder that just 25% of young adults said they believed it was a [good time to buy a house](https://money.com/bad-time-to-buy-house-poll/) this spring, compared to 42% a year earlier. Of course, regrets about money aren’t just limited to millennials. Among buyers across all generations who purchased homes during the pandemic, 36% [believe they overpaid](https://money.com/homebuyers-overpaid-pandemic-survey/), according to the survey by Money and Morning Consult. 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