Are you an aspiring homeowner? If so, your age could play a significant role in your chances of buying.
Statistically speaking, older generations are far more likely to own their own homes in the U.S. In 2025, baby boomers owned at the highest rates (79.9%) while adult Gen Zers owned at the lowest (27.1%).
Does that mean homeownership is out of reach for younger generations? Definitely not. In fact, homeownership rates for millennials and Gen Zers ticked up slightly in 2025. What it does mean, however, is that young Americans are less likely to build wealth through real estate than older generations.
Homeownership rates increased for millennials and Gen Zers in 2025, but both groups still own homes at lower rates than their parents did. According to an analysis from Redfin, 57% of people in their mid-30s now own their residences, while 64% of their parents owned homes at the same age.
Why are homeownership rates dropping for younger generations? It’s certainly not a lack of desire. Here are some of the main obstacles to buying a home for younger generations:
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Older generations have had more years to save for a down payment.
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Housing prices are now at historical highs.
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Mortgage rates, which were below 3% in 2020, have generally held above 6% since 2022.
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Housing inventory and new construction have remained low.
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Would-be buyers are discouraged by inflation, tariffs, and job insecurity.
| GENERATION | AGE IN 2026 | HOMEOWNERSHIP RATE |
|---|---|---|
| Baby boomer | 62-80 | 79.9% |
| Gen X | 46-61 | 72.7% |
| Millennial | 30-45 | 55.4% |
| Gen Z (adults) | 19-27 | 27.2% |
In 2025, the average mortgage balance in the U.S. was $258,214, according to Experian. Of course, when you break the figures down by generation, they look quite different. In general, once buyers reach their mid-30s and early 40s, they steadily begin to pay down what they owe.
| GENERATION | AVERAGE MORTGAGE BALANCE |
|---|---|
| Baby boomer | $194,334 |
| Gen X | $283,677 |
| Millennial | $312,014 |
| Gen Z (adults) | $249,744 |
The gap in homeownership rates between Gen Z and millennials should come as no surprise. Home-buying tends to be tied to major life events, which many Americans are delaying now more than ever. These include:
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Marriage
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Having children
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Career changes
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Divorce
For many people, the most significant life events now happen around the age of 30. The median age of first marriages is now 30.8 for men and 28.4 for women, up from 22 for women in 1980. And according to the most recent stats on childbirth (2022-2023), the average mother has her first child at the age of 27.5 while fathers now start at age 31.5.
As people continue to delay these major milestones, we can expect a continual rise in the average age of first-time home buyers.
Read more: Buying a home doesn’t have to delay your next life milestone. Here’s how to achieve your goals.
Here are some of the home-buyer trends we expect to see across the generations over the next decade or more:
Homeownership rates for Gen Zers will continue to rise as this group ages. But as first-time buyers, they’ll be more willing to compromise on key details in order to make buying affordable.
For example, these buyers may opt for homes in the suburbs instead of metro areas, especially those who work remotely. For city dwellers, they’ll be more likely to choose smaller homes or fixer-uppers.
Read more: 6 Gen Z savings strategies that can work for anyone
The median age for first-time homebuyers hit a historic high of 40 in 2025. That’s not great news for Gen Zers, since they’re yet to enter their 30s. But millennials, or people who fall between the ages of 30 and 45 in 2026, are more likely to make their first purchase in the coming decade.
Baby boomers and Gen Xers who’ve been in place for a while will be less likely to upsize. We saw this trend begin in 2025, with homeowners waiting longer to sell (a median of 11 years) than in the past. When they did enter the market, they increasingly delisted their properties after getting suboptimal offers.
That’s due, in part, to the fact that interest rates remain high. Given that around 70% of mortgagees have interest rates below 5%, getting back into the market still looks like a pricey venture for the vast majority of owners.
Read more: Relisting your home? 6 tips for a successful sale.
The Great Wealth Transfer is underway and is expected to continue through 2048. During this major transition, members of the baby boomer and Silent Generations are expected to leave nearly $100 billion in assets to their heirs, including real estate.
It’s uncertain how the transfer of property will impact real estate markets. But it’s likely that many heirs will sell their property and use the money for down payments on homes of their choosing.
