A small but increasing proportion of Generation Z adults (born 1997-2003) are purchasing homes, even as the broader U.S. housing market records an all-time high average age for first-time homebuyers and a historically low share of first-time buyers.
Homeownership Trends by Generation
According to the National Association of Realtors (NAR), Gen Z buyers accounted for 4% of all homebuyers in 2025, up from 3% in 2024. The average household income for this group was $76,000.
Gen Z buyers are more likely to utilize government down-payment assistance programs compared to older generations. A total of 16% of Gen Z buyers received a gift or loan from parents to assist with their purchase, which is lower than the traditional average of 25%. Single women constitute 35% of Gen Z buyers, the highest share among all generations.
The share of first-time buyers across all generations was approximately 20% of homes sold during the 12-month period ending in June 2025—a record low.
NAR data also indicates that the share of first-time buyers across all generations was approximately 20% of homes sold during the 12-month period ending in June 2025, a record low and half the proportion observed a generation ago. The average age for a first-time homebuyer reached an all-time high of 40 years, while the overall average age of all buyers was 59.
Market Conditions and Obstacles
The housing market is characterized by a shortage of inventory, which has contributed to record-high prices and a scarcity of starter homes in many areas. This situation is influenced by existing homeowners remaining in their residences for an average of 11 years, a record duration, often due to holding mortgages with lower interest rates. This prolonged occupancy reduces the number of homes available for new buyers.
Financial obstacles for prospective first-time buyers include the high cost of essential goods and services, as well as existing financial obligations such as student and medical debt. These factors can impede the ability to save for a down payment.
Examples of Home Purchases
- Francisco Vazquez, 27: Purchased a $220,000 home in Milwaukee. He saved $72,000 over two years by saving 70% of his paycheck and has a 15-year fixed-rate mortgage.
- Joanna Belechak, 25: Purchased a townhouse in Pittsburgh with assistance from her parents. She is listed as the sole person on the mortgage.