“The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory,” Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement. “The share of first-time buyers in the market has contracted by 50% since 2007—right before the Great Recession.”
The Coldwell Banker report also shows 53% of aspiring first-time homeowners don’t expect to buy their first home until they’re at least 40, suggesting milestones like starting families could be pushed back even further.
“The income needed to buy a home in the U.S. “remains significantly higher than before the [COVID-19] pandemic, underscoring the ongoing challenge of affordability even as market conditions gradually rebalance,” Realtor.com Chief Economist Danielle Hale previously said in a statement.
Although the path to homeownership “may be more complex for Gen Z,” Waugh said, they’re also a generation that’s resourceful and determined.
Waugh gave an example of a 20-year-old client who chose to forgo college, began working at 17, and spent three years saving while living with his parents to save enough money to buy a house of his own.
“This openness to multigenerational living and creative financial strategies suggests that—rather than being unattainable—the American Dream is being redefined by Gen Z to align with evolving economic realities,” Waugh said.
