These days, homeownership is no easy feat; what once was a common milestone for generations of adults now feels unfathomable for Gen Z and millennials. Sky-high prices, inflated interest rates, and a decline in âstarterâ homes on the market pose high barriers to entry for many first-time buyers.
According to the Urban Institute, the homeownership rate for young adults, or those under 35, declined from 45% in 1990 to 39% in 2022. And per the US Census, college graduates ages 25 to 29 experienced the greatest losses in homeownership rates between 2004 and 2019.
But Gen Z, born roughly between 1997 and 2012, has seen higher homeownership rates than both millennials and Gen Xâers when they were the same age. A recent Redfin study notes that the rate for 24-year-old Gen Zâers is currently 27.8%, compared to 24.5% when millennials were 24, and 23.5% for Gen Xâers at that age.
So, how exactly is this younger demographic making it happen? Ahead, eight Gen Zâers reveal the strategies they used to buy their first homes before hitting their thirties.
Live with your partnerâs parents to save for a down payment
When Victoria Bellucci and her future fiancé decided they wanted to live together, theyâd already gotten on the same page about one day buying property. To them, it seemed, there were two options: continue renting in New York City while trying to save for a down payment, or move in with Bellucciâs future in-laws on Long Island to save that money in half the time. âWe decided to live with his parents, which really made it possible to reach our goal so much faster,â Bellucci says.
Over the next year and a half, the couple saved as much as they could from their combined incomes, aiming to set aside 50% of each paycheck, plus any extra funds whenever possible. âI completely understand that saving half of your paycheck isnât realistic for most people, but for us, not having to pay rent and cutting back in other areas made it possible,â Bellucci adds.
As she further explains, they kept their expenses low by sacrificing things like going out to dinner, traveling, and spending on the âfunâ stuffâclothes for her, golf for him. Their period of frugality paid off: At age 28, Bellucci and her fiancé purchased a five-bedroom house built in the 1950s in Babylon, New York.
Move far outside the city to find a place you can afford
As a college graduate living in Boston, Justin Lopilato was tired of paying rent. He was drawn to the idea of âhouse hacking,â or buying a multi-family property, living in it for a time, and then using it for rental income. But when he sat down with his agent, Dana Bull, she drew a clear line between his expectations and the state of the market. âI wanted to be in the Cambridge area and that wasnât really realistic,â Lopilato says.
