Homeownership and Generation Z
Written by: Mary Jane Watkins, Summer 2025 Intern
For a long time in the United States, the “American Dream” of homeownership has been a dream for most and accomplished through hard work. The goal of owning a home is now becoming increasingly difficult for younger generations, including Generation Z. As a person in Gen Z (born between 1997- 2012), it feels like we can work hard, go to school, get a degree, and still feel uncertain about the prospects of homeownership.
Our main concerns include affordability, economic uncertainty, debt, and lack of financial literacy. Affordability is a major obstacle and the most daunting. Housing costs increased nearly 50% between 2019 and 2024, and mortgage rates nearly doubled, causing monthly payments to be much more than most can manage. For those of us who want to settle back down in the Charlotte region after attending university, nerves are through the roof. In addition to skyrocketing housing costs, the ability to live comfortably is at risk and in Charlotte, it requires a salary of $92,612. Here the average household salary is $78,438 and for single individuals, even lower.
On top of these issues, economic uncertainty makes it even more difficult to purchase a home. U.S. homeownership rates have fallen to 65.1% in early 2025, a near decade low. Many are unsure about whether the economy will lean in our favor or against us in the next few years. Also, debt continues to haunt us, making it difficult to save for down payments or even secure loans in the first place. Additionally, financial education remains alarmingly low, with only 16.4% of U.S. students required to take a personal finance course to graduate high school and rates for students in low-income schools dropping to 5.5%. These factors create uncertainty and fear among young adults.
In addition to economic challenges, emotional and social ones exist too. Homeownership sparks anxiety, frustration, and oftentimes feelings of inadequacy. There has been a shift from homeownership being a typical milestone to a dream that may never be fulfilled. The presence of social media may also contribute to this, making it easier to compare our own situations with others who may be ahead in the homeownership journey.
Despite the barriers, we are pursuing alternatives to traditional homeownership including co-buying and alternative ownership models like rent-to-own (which allows renters to build equity), fractional ownership, and co-housing. These solutions may address some of the biggest barriers to homeownership.
We are not always looking for white picket fences and sprawling suburbs like our parents and grandparents, but we still want something to call our own. We value the opportunity to build wealth and create roots to shape our futures. Although homeownership may not define adulthood anymore, the search for belonging, financial stability, and autonomy is timeless.