Gen Z Home Ownership Hits Record Low Compared to the 1980s

A fresh analysis of housing and wealth data paints a difficult picture for younger adults. While 45% of people in their mid twenties could afford a home back in the 1980s, that number has plummeted to just 15% today. With rising rents and high home prices, more than 40% of Gen Z adults are currently living with their parents.

Several factors contribute to this shift. Stagnant wages combined with intense competition in the job market have made it harder to build savings. Even for those who manage to secure a mortgage, interest rates remain at historic highs, and loan terms are often stretched out for 25 years or more. This long term debt burden further limits the ability of young people to save for their future.

The economic gap between generations has left many young people feeling pessimistic about their financial prospects. Many feel that the goal of home ownership is drifting further out of reach as the cost of living continues to climb. While these trends impact the broader economy, they also help explain why many young adults are turning toward alternative financial paths to secure their wealth.