By Claire Moraa
- 25% of first-time homebuyers in 2025 are Gen Zs
- The median price for a home in the U.S. is $286,000
Despite facing obstacles such as rising home prices, student loan debt, and economic uncertainties, Gen Z’s are resilient to overcome these challenges and enter the housing market. In a new report, at least 25% of first-time homebuyers are Gen Zs in 2025 compared to 2% in 2021. This is a significant milestone given that this generation has been hit with one of the toughest economic times and still, they are entering this market earlier than millennials did at the same age.
Why This Matters: The median price for a home in the U.S. stands at $280,000, a 286% jump in just five years. And while this may seem achievable to the average citizen, a home that comes at such a price will not be found in the upmarket neighborhoods or even the city of your choice. Luckily for Gen Zs, they are not that fixated on location or the ‘dream home’ with a garden and a pool. A starter home in a low-cost and overlooked city is becoming their go-to choice since a good number of this demographic also prefer remote/hybrid work. They are willing to sacrifice a few more minutes of driving downtown as long as they can get an affordable place to call home.
Gen Zs are often painted as financially doomed but the data tells a more nuanced and even optimistic story. So how are they doing it with the obvious economic challenges? 45% of Gen Z mortgage applications in 2024 include a co-applicant, usually a parent, sibling, or close friend. Co-borrowing helps improve creditworthiness, increase loan approval chances, and access better rates. Another group benefits from inter-generational wealth transfer, receiving financial support and inheritances. By embracing these realistic but uncommon ideas, they’re able to secure a home much earlier than other generations who might wait until retirement to achieve a dream home.
What’s Next: Gen Zs are flipping the script. They aren’t waiting for the system to change, they’re changing their strategy to beat the system. Their efforts could have ripple effects on housing demand, urban planning, and generational wealth in the years to come.
CBX Vibe: ‘Our Time Now‘ Plain White T’s
