The dream of homeownership is slipping further out of reach for many young Americans. According to a report by Redfin, in 2024, just 26.1 percent of Gen Z adults owned homes—virtually unchanged from previous years. Millennials fared only slightly better—their homeownership rate of 54.9 percent showed no real growth from 2023. 

Compared to previous generations, Gen Z and millennials are lagging. For instance only 33% of 27-year-old Gen Zers own a home today, compared to 40% of baby boomers at the same age. The reasons are clear: housing prices remain high with mortgage rates hovering between 6% and 7%, and inventory is low.

Despite rising wages, incomes have not kept up with monthly mortgage costs, which reached a record high of $2,800 by spring 2024. Without home equity from previous properties, younger buyers face bigger financial hurdles than older generations. 

Beyond affordability, young people are navigating economic uncertainty, student debt and changing lifestyle priorities. Some are delaying traditional milestones like marriage or parenthood, while others are choosing flexibility over permanence in a post-pandemic world. 

Though homeownership remains a marker of stability, many Gen Zers and millennials are exploring alternative investments, from stock market to entrepreneurship. For now, renting—and waiting—may feel like the only viable option.