The oldest members of Generation Z (born between 1997 and 2012) have barely entered their prime home buying years, and the youngest of them won’t even qualify for a mortgage until the year 2030 at the earliest. Even so, Gen Zers recently represented some 13% of mortgage applicants and 3% of buyers. Among older Gen Zers (those age 19 to 27 in 2024), 26% already owned a home. Here’s how they’re buying homes—and where.
Key Takeaways
- Despite high interest rates and housing prices, Gen Z is finding ways to buy homes.
- Many are getting help from family members or taking second jobs to afford a down payment.
- Gen Z is also scouting out parts of the U.S., particularly in the Midwest and South, where housing remains relatively affordable for first-time buyers, including Jacksonville, NC, Elkhart, IN, Lima, OH, Waterloo, IA, and Cumberland, MD
Why Gen Z Is Making Moves Now
Like generations before them, a sizable majority of Gen Zers consider home ownership one of their top financial goals. In fact, in 2024, a higher percentage of older Gen Zers owned homes than millennials and Gen Xers had at the same age, according to a RE/MAX survey.
That was made possible in part by the historically low mortgage rates during the COVID pandemic of 2020-2021. Those rates, which dipped as low as 2.65%, put home buying within reach for many young borrowers, including the older members of Gen Z.
Interest rates have risen substantially in the years since and home prices have increased as well, but many Gen Zers haven’t given up on their dream of home ownership. They’ve just had to find resourceful ways to achieve it.
Strategies Gen Z Is Employing
Finding Affordable Loans
Scraping up the cash for a down payment is a challenge for many first-time buyers like Gen Z. One option is an FHA loan, which accepts down payments as low as 3.5% or 10% and also has lower minimum credit score requirements than conventional bank loans.
They may also be eligible for other programs specifically geared to first-time buyers, such as Freddie Mac’s Home Possible and Fannie Mae’s HomeReady Mortgage.
Tip
Some banks, as well as state and local government agencies, have grant programs to assist first-time buyers with a down payment.
Enlisting Family Support
Past generations of home buyers have often relied on their families for financial help, and Gen Z is no exception. A 2024 survey that lumped Gen Z and millennials together reported that 36% expected to use cash gifts from family members to assist with their down payments. Some 16% of that combined group planned to use money from an inheritance.
Another survey, by Redfin in 2025, found that among Gen Zers age 18 or older, 21% of prospective buyers expected some down payment assistance from their family in the form of a loan. Families can assist in other ways, too. The 2025 survey reported, for example, that 22% of Gen Z homeowners bought their homes with their siblings.
Note
Parents and other family members with solid credit scores can also serve as co-signers on a mortgage application if the younger person wouldn’t qualify on their own.
Making Lifestyle & Purchase Trade-Offs
Many members of Gen Z have shown a willingness to make some short-term sacrifices in order to buy a home. Some 30% of Gen Z homeowners in the 2025 survey reported taking on a second job to raise money for their down payment, while 34% of prospective buyers said they’d consider living with family or friends while saving up.
Many are also prepared to compromise in terms of the home itself. A combined 92% of Gen Z and millennial homeowners in that survey said they don’t live in their “ideal area.” Citing several surveys, the National Association of Realtors reported in 2024 that more than half of Gen Zers would be willing buy a fixer-upper to obtain a lower price, and roughly a quarter were prepared to live in a less safe area for that same reason.
Targeting Affordable Markets
Gen Z has also proven resourceful in seeking out bargain real estate markets like the Midwest and South, according to a 2024 Realtor.com report. It listed metro areas that were drawing the highest percentage of Gen Z homebuyers. Topping the list, and their median home prices at the time, were:
- Jacksonville, North Carolina: $330,000
- Elkhart, Indiana: $295,000
- Lima, Ohio: $212,500
- Waterloo, Iowa: $280,450
- Cumberland, Maryland: $158,000
Another study at around the same time singled out Fort Wayne, Indiana; Corpus Christi, Texas; Detroit, Michigan; Laredo, Texas; and Memphis, Tennessee as the major U.S. cities where Gen Xers would find it easiest to buy a home.
The Bottom Line
Despite the financial obstacles, Gen Z is finding ways to realize home ownership dreams, and as more of its members reach their 20s and 30s, this generation should become an increasingly powerful force in the real estate market. At the same time, Gen Z may bring new vitality to parts of the U.S. where affordable housing is more widely available.