Homebuying Tips for Gen Z and Millennials

High housing costs, student loan debt, and changes in the job market affect people of all ages, but they can be especially challenging for younger generations. Buying a house can seem impossible for Gen Z and Millennials, but some people are finding ways to make it happen.

How the Economy Is Affecting Young Homebuyers

Economic realities are creating barriers to entry for young people who want to become homeowners. According to a study by the National Association of Realtors, in 2025, only 3% of homebuyers were members of Gen Z, and 29% were Millennials. Members of Gen Z tend to have lower incomes than older generations.

Gen Z homebuyers are also less likely to be married than older buyers. The NAR reported that 30% of Gen Z homebuyers were single women.

Buying a home can be difficult even when two people are contributing financially. Working with a single income adds another layer of complexity. Still, that statistic proves that it is possible to afford a house on one income.

How Young People Can Afford Homeownership

There’s no doubt that buying a house can be challenging, especially if you’re young and you’re starting out in your career. Here are some proven strategies that can help you become a homeowner:

Avoid Student Debt

Student loan payments can put a strain on your monthly budget. If you’re in college or you plan to pursue higher education, try to avoid going into debt. Work part-time during the academic year and over the summer to help cover costs. If you can live at home with your family while pursuing your studies, you’ll be able to avoid fees for room and board.

Keep Your Expenses Down

Look for ways to minimize your housing costs, such as living with family or a roommate. Limit the amounts you spend on clothing, eating out, entertainment, and other non-essentials.

Living this way might not be ideal, but it doesn’t have to last forever. These are temporary sacrifices that can pay off later.

Focus on Lower-Cost Areas

Home prices can vary dramatically from one place to another. Some cities might be out of your price range, but that doesn’t necessarily mean that you can’t become a homeowner.

If you widen your search geographically, you’ll be more likely to find houses you can afford. If you work remotely, you have the flexibility to live pretty much anywhere. Look at areas where home prices are below the national average.

Take Advantage of Down Payment Assistance Programs

Saving enough for a down payment is one of the most common obstacles for first-time homebuyers. The good news is that you don’t have to come up with all the money yourself.

State and local government agencies offer a variety of down payment assistance programs. Research programs in your area to find out if you qualify.

Shop around for a Mortgage

Lenders have their own guidelines that they use when evaluating loan applications. If you provide the same data to several lenders, they might offer you different interest rates.

Even a small difference in the interest rate can have a big impact on your monthly payments and the total amount of interest you’ll pay over the life of the loan. That’s why you should shop around for a mortgage. Get quotes from a handful of companies, including banks, credit unions, and online lenders.

Learn How to Navigate the Homebuying Process

A house will probably be the most expensive purchase you’ll ever make. Before you take the plunge, make sure you understand how things work so you can make the right choice.

In the First-Time Homebuyer Masterclass, you’ll learn how to find a house that fits your budget, how to choose the right kind of mortgage, and much more. Your down payment assistance program or lender might cover the cost of the course. Enroll today.

Please share this blog on social media and/or send it to someone you know who is thinking about buying a house this year.