When it comes to homeownership, Gen Z might be ahead of the curve. According to data from real estate firm Redfin, more Gen Zers owned their home at 24 than their parents did (millennials and Gen Xers) when they were the same age.
While homeownership rates stagnated in 2023 due to increased interest rates and housing prices remaining willfully high, Gen Z still seems better equipped to achieve the American dream of homeownership.
Daryl Fairweather, chief economist at Redfin, said in a press release: “Housing affordability remains strained, but things are looking up for Gen Z. The recent decline in rents means Gen Zers can put more money toward saving for a down payment. Plus, the job market is strong, and career opportunities have become less concentrated in expensive cities during the remote work era, meaning many Gen Zers can choose to live somewhere more affordable.”
What the Numbers Say
Just over a quarter (26.3%) of Gen Zers owned a home in 2023, pretty much flat compared to 26.2% in 2022. Redfin’s data included only adult Gen Zers (those aged 19-26).
While homeownership numbers stagnated for the TikTok generation, they are still ahead of where their parents were at the same age. For example, around 27.8% of 24-year-old Gen Zers own a home, while only 23.5% of Gen Xers, who are generally the parents of Gen Z, owned homes at that age. Meanwhile, 24.5% of millennials owned homes at the same age.
Many Gen Z adults who own a home bought during the pandemic when they were able to benefit from record-low interest rates. The economy looked very different from when their parents and millennials entered the workforce.
Gen Xers had to contend with an early-’90s recession, while older millennials started working during the Great Recession. Still, all three generations lag behind baby boomers, a generation in which 35.6% owned a home by the age of 26.