Those born between 1997 – 2012 known as Gen Z saw homeownership rise slightly in 2025, with 27.1% of Gen Z–headed households owning a home, up from 26.1% in 2024, according to Redfin’s analysis of the Current Population Survey. Millennials (born 1981 – 1996) also saw a small increase, reaching 55.4% compared to 54.9% a year earlier. Older generations remained stable, with Gen X (born 1965 -1980) at 72.7% and baby boomers (born 1946 – 1964) at 79.9%, reflecting the advantage of time and historically lower housing costs.

The report notes that the gains among younger buyers are meaningful but modest. Affordability improved slightly in 2025 as mortgage rates inched lower, home-price growth slowed, wages rose, and more inventory came onto the market. However, housing remains expensive: buyers still need an income of about $112,000 to afford the median-priced U.S. home, far above the median household income.

Despite challenges, young adults accounted for a larger share of home purchases in 2025. Buyers aged 19–29 made up 18.5% of home purchases, up from 14.4% the year before, often by compromising on location, buying smaller homes, relocating to cheaper areas, or receiving family support.

Gen Z and millennials are making slow but steady progress into homeownership, driven by determination and marginal affordability improvements.

Source : https://bit.ly/4qYhjll