What can Gen Z expect from the housing market?

For a generation that’s still in the process of reaching full adulthood, Generation Z made up 13% of all home purchase applications in 2024. That’s pretty good considering some members of Gen Z won’t be eligible to enter the housing market till 2030.

A 2025 report from the National Association of Realtors shows Gen Z tends to buy older homes than other generations, and those who have been entering the housing market tend to be unmarried and without children.

Generation Z is defined as anyone born from 1997 to 2012, and the youngest age allowed to become a homeowner in most states is 18. For context, the median age of first-time homebuyers in 2024 was 35.

For any members of Gen Z looking to enter the housing market, begin by talking with a lender and starting your mortgage application.

What are common challenges that Gen Z homebuyers face?

Some of the challenges that Gen Z face when trying to enter the housing market are income, debt and the housing market.

Income

The median reported income in the U.S. for Gen Zers in 2024 was around $45,000. This is below the national average annual income ($59,228) and the national household income ($66,622). Lower average income could make it harder for people in this group to put down payments on a home without a gift or the right loan. Lower income for Gen Z could also mean stretching finances thinly when making monthly payments on a mortgage.

Debt

Gen Zers carry more personal debt than any other generation, with an average debt of $94,101. The majority of this debt, 87%, tends to come from credit cards and student loans. This debt translates to a higher debt-to-income ratio, which is used by Loan Officers to show lenders what percentage of monthly income is being used to pay back debts. Higher debt-to-income ratios could make it harder to qualify for certain loans.

Housing market

With many older Americans holding onto their homes later in life, there are fewer homes on the market for younger homebuyers. Alongside that, mortgage interest rates have given some Gen Zers pause when considering buying a home.

Which markets are Gen Z buying homes in?

Gen Z has a higher representation in lower cost housing markets, such as the Midwest and parts of the South. The top places Gen Z buyers were looking to make their home in 2024 were Des Moines, Iowa, and Omaha, Nebraska. Gen Z makes up 21% of home-purchase applications in these markets, where the median home price is under $270,000.

What can Gen Z do to get help to buy a home?

When considering buying a home, researching different loan types or assistance programs could help Gen Z in buying a home. Some loan programs offer flexible down payment options, lower credit scores or higher debt-to-income ratios.

An FHA loan* is a great option for young homebuyers who might not qualify for a traditional loan. If you are looking for favorable loan terms and are a military service member, you might be eligible for a VA loan for a home purchase.

Some family members may choose to help younger homebuyers by gifting down payments, co-signing on a loan or jointly owning a home. While this option isn’t available to everyone and could come with its own pros and cons, it can make homeownership easier for Gen Z.

If you aren’t looking to buy a home soon, aren’t able to yet or are trying to save up for a down payment, working on your credit score** and debt-to-income ratio could be helpful and could get you more favorable loan terms.

How can I start the mortgage process?

The best way anyone can start the mortgage process is by talking with a professional lender who can show you what your loan options are based on your exact situation. Lenders can even help you get started on the mortgage process with a mortgage pre-approval before you begin looking at homes.

Pre-approvals can show you what your loan will look like and how much home you could afford. This will let you plan out your monthly mortgage payments and tell you the price range of homes to be looking at. A pre-approval will even allow you to make an offer the moment you find your dream home.

Your pre-approval can expire after a few months. So, make sure you ask your lender how long you will have shop for a home before you need a new pre-approval.

Start the mortgage process and get one step closer to becoming a homeowner by talking with a trusted lender today!

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.

*OriginPoint is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the Nevada Department of Veterans Services, the US Department of Agriculture, or any other government agency. No compensation can be received for advising or assisting another person with a matter relating to veterans’ benefits except as authorized under Title 38 of the United States Code.

**OriginPoint does not provide credit counseling or credit repair services.