Is Owning a Home Still the American Dream for Younger Buyers?

So where does that leave Gen Z and millennials? The answer is complicated—and more hopeful than you might expect.

The Dream Is Alive, Even If the Path Is Harder

Despite the challenges, the desire for homeownership among younger generations remains remarkably strong. According to a 2025 Coldwell Banker survey, 70% of Gen Z and 72% of millennials plan to buy a home within the next five years.

A separate Realtor.com survey found that 70% of Gen Z and 69% of millennials identify homeownership as a life goal—significantly higher than Gen X (62%) and baby boomers (59%).

And it's not just about financial security. A 2025 PulteGroup survey found that 77% of millennials and Gen Z are making homeownership a top priority, with 62% citing "providing a home for their family" as their primary motivation. For these generations, owning a home represents stability, belonging, and the freedom to build a life on their own terms.

The Reality: A Housing Market Starved for Affordability

The numbers tell a sobering story about access. According to the National Association of Realtors' 2025 Profile of Home Buyers and Sellers, first-time buyers now make up just 21% of the market—the lowest share since tracking began in 1981.

The affordability gap is significant. According to Bankrate's 2025 Home Affordability Report:

• 65% of millennials say home prices are too high
• 60% say their incomes aren't high enough to buy
• 70% cite not having enough saved for a down payment as their biggest hurdle

Meanwhile, the median home price has risen more than 50% since 2019, now exceeding $415,000. Buyers need to earn approximately $116,600 annually to afford a mid-priced home, while the typical household earns around $86,400—keeping homeownership firmly out of reach for many.

The Generational Wealth Gap

One of the most striking dynamics in today's housing market is the wealth divide between generations. Baby boomers now represent 42% of all homebuyers, up from 31% the previous year. They're sitting on approximately $82 trillion in wealth—more than twice what Gen X has and four times as much as millennials.

This wealth advantage translates directly to housing power. Boomers aren't just buying one home—they're purchasing additional properties at higher rates than younger buyers.

How Younger Buyers Are Adapting

Despite the obstacles, Gen Z and millennials aren't giving up—they're getting creative. According to the Coldwell Banker survey, 71% of aspiring homeowners are delaying major life milestones like marriage, having children, or making career changes to save for a home. Among Gen Z specifically, 84% are delaying at least one major life decision.

Strategies emerging among younger buyers:

• Family assistance: 2 in 5 buyers are getting help from family members, with 47% of millennials and 32% of Gen Z receiving support
• Multiple income streams: 43% would take on a side gig or second job to afford a home
• Co-buying: More than a third have considered co-buying with family or friends, with Gen Z most willing (63%)
• Living with parents: About 1 in 5 Gen Zers are living with parents to save for a home
• Fixer-uppers: 42% plan to buy homes that need work to make homeownership more affordable

The Belief Gap: Desire vs. Expectations

While the desire for homeownership remains strong, there's a growing gap between wanting a home and believing it's achievable. A 2025 NeighborWorks survey found that 38% of Gen Z and 32% of millennials don't believe they'll ever own a home. According to Citi research, 67% of Americans believe homeownership is an unrealistic milestone for young people.

Yet most younger Americans haven't given up. According to the Coldwell Banker survey, 70% of Gen Z and 72% of millennials plan to buy within the next five years. Bankrate's 2025 survey found that 82% of Americans still consider homeownership part of the American Dream—up from 78% in 2024.

This persistent optimism, even in the face of significant barriers, suggests that homeownership remains a core American aspiration that younger generations are determined to achieve, even if the timeline has shifted.

What This Means for Younger Buyers in Austin

Here in the Austin market, we work with Gen Z and millennial buyers navigating these exact challenges every day. The good news? There are strategies that can make homeownership more achievable:

• Explore down payment assistance programs. Many buyers qualify for support they're not yet aware of. State and local programs can significantly ease the financial burden for first-time buyers.
• Start the process early. Work with a local real estate professional who understands the market and can help you prepare financially, even if you're not ready to buy for another year or two.
• Consider your full financial picture. Buying a home is about more than the purchase price—factor in property taxes, insurance, maintenance, and your long-term goals.
• Don't get discouraged. Yes, the market is challenging. But with patience, planning, and the right guidance, homeownership is still achievable for younger buyers who are willing to adapt their approach.

The Bottom Line

Is owning a home still the American Dream for younger buyers? The data says yes—overwhelmingly. What's changed is the path to get there. It takes longer, requires more creativity, and often means making trade-offs previous generations didn't face.

But the dream itself? It's as alive as ever. And for those willing to adapt, there's still a way forward.