Young Americans are not letting an unaffordable housing market prevent them from purchasing their own homes.
“Despite financial hurdles, the dream of homeownership remains a powerful motivator for Gen Z and Millennials, who are making sacrifices in the present to prioritize the long-term financial security a home can provide,” BofA’s annual Homebuyer Insights Report said.
It found that 30% of Gen Z homeowners paid for their down payment by taking on an extra job, up from 28% in 2024 and 24% in 2023.
The survey also revealed a sharp increase in another financial resource: 22% of Gen Z homeowners bought their home with siblings, surging from 12% in 2024 and just 4% in 2023.
According to BofA’s recent report, 21% of prospective Gen Z buyers said they plan to rely on family loans for a down payment, compared to 15% of survey respondents overall.
“Even with the challenges they face, younger generations still understand the long-term value owning a home offers them and many are doing what it takes to get there,” Matt Vernon, BofA’s head of consumer lending, said in the report, which came out May 28. “They are finding creative ways to afford down payments and working hard to improve their financial futures.”
Meanwhile, the BofA study found that among survey respondents overall, the housing market—which has largely remained frozen by high mortgage rates and home prices—is a puzzle.
Sixty percent of current homeowners and prospective buyers said they can’t tell whether it’s a good time to buy a home or not, versus 57% last year and 48% in 2023.
Still, a larger share of prospective buyers think the market is better now than a year ago and are holding off on buying as they expect mortgage rates and home prices to fall later.
“They may be waiting for the right moment, but they’re not standing still,” Vernon said. “They’re building credit, saving for down payments, and paying attention to the market so they can buy when the time is right for them.”
