Young Americans are tracking behind their parents’ generations in terms of the homeownership rate, a recent report from Redfin shows.
For instance, 33% of 27-year-olds own their home today, compared with 40% of baby boomers when they were 27.
A little over a quarter (26.1%) of Gen Zers owned their home in 2024, essentially flat compared with 2023 (26.3%) and 2022 (26.2%).
Before that, the Gen Z homeownership rate had increased each year since Gen Zers started aging into potential homeownership in 2017 (except 2022, when it stayed flat).
The story is similar for millennials: 54.9% of millennials owned their home last year, essentially unchanged from 2023, when it was 54.8%. Prior to 2024, the millennial homeownership rate had increased each year since 2012.
Older Americans saw their homeownership rates increase slightly in 2024: 72.9% of Gen Xers owned their home in 2024, up from 72% in 2023. And 79.6% of baby boomers owned their home, up from 78.8%.
Those small increases are fairly standard for older generations.
The homeownership rate for millennials and older Gen Zers might be expected to continue increasing because they’re in prime homebuying age, and many are getting married, starting families and settling into their careers.
But many people in those generations have been unable to buy homes because sale prices and mortgage rates have soared over the last few years.
“Homeownership is still a symbol of success and stability for many Americans, but the nation’s culture is shifting with the economic times,” says Daryl Fairweather, chief economist for Redfin, in the report. “Some young people are placing less emphasis on owning their own home because they’re prioritizing flexibility, while others continue renting because they can’t afford to buy. Buying a home is still typically a good financial investment, but for young people who don’t have the desire or means to do so, there are other viable investments that, unlike buying a home, don’t require a huge down payment. Those people might consider investing in the stock market, their own business, or education.”
Photo: Alexander Dummer
