The turbulence of the 2008 housing crash, the pandemic, and the subsequent rise in rents and inflation marked some of Matthew M. Williams’ most formative years. In search of stability, he recently purchased his first house in the St. Louis area. This sense of permanence is theprimary motivator for millennial and Gen X homebuyers, according to a new study by real estate company Clever Offers.
The survey revealed that younger and older generations hold starkly different views on the housing market and homeownership in general. Younger buyers may seek stability, but older ones seek comfort. And while this could be attributed more to their stage of life than their designated age group, these competing wants have the housing market locked in a tug-of-war.
At 25, Williams is far younger than most homebuyers. In 2024, themedian age of first-time buyers was 38, up from 35 the previous year. He said the buying experience showed him how dramatically different his journey to homeownership was from his parents’.
“Growing up, homeownership felt normal,” said Williams, Director of Operations atSaint Louis Closet Co. “My parents owned their home for decades. Today, even with a stable career and careful financial planning, the path to owning a home feels much steeper.
“But the dream of homeownership hasn’t disappeared, it’s just evolving.”
Different Views, Different Experiences
Nearly all survey respondents (90%) agreed that owning a home is part of the American dream. However, that dream — and the expectations around it — look different depending on when you grew up.
Baby boomers generally had an easier path to homeownership. The gap between house prices and income was much smaller, and there was less competition from real estate investors. By contrast, today’shome price-to-income ratio is at an all-time high, meaning workers must make more money to purchase even a modest house.
To afford the median home sale price of $416,900, a buyer would need to make over$100,000 annually with a 20% down payment and a 6.89% interest rate. However, recent data suggests themedian annual salary is just over $62,000, making homeownership today more of a long-term goal than the early milestone it was for older generations.
“Boomers viewed buying a home as a rite of passage into adulthood, but younger buyers see it as a reward for being stable financially,” said Jon Wade, a real estate expert and owner ofThe Steamboat Group in Colorado.
Student loan debt is another obstacle holding younger generations back that their older peers didn’t have. About 22% of millennials said they can’t afford a home because of student loan debt, versus just 3% of boomers. Gen X, millennials, and Gen Z make up roughly 90% of the country’sstudent borrowers.
“It’s pretty easy to see why this generation feels that owning a home is a bigger challenge,” Wade said.
What ‘Home’ Really Means
Although both older and younger buyers want a place to call home, the long-term idea of “home” means two different things. Karen Watts, Founder and CEO ofDomiSource, stated that baby boomers view homeownership as an asset they can purchase early, pay off, and utilize for equity when they retire. For millennials and Gen Z, though, the view of homeownership is utilitarian.
“The younger generation does not have the same fondness, or romantic view, of a 30-year mortgage because their economic situation has not allowed for it,” she said.
Essentially, younger buyers want flexibility, access to amenities, and an enjoyable living space. They also prize the mobility that comes with renting. About 40% of millennials surveyed said they haven’t bought a home because they plan to move to another city or state.
Expectations about homes have also changed. Young adults from middle-class families often seem to want to skip the starter home for a more comfortable home reminiscent of their childhood. Data from theNational Association of Home Builders shows that 38% of buyers want a house between 2,000 and 3,000 square feet — several times the size of a typical starter home’s750–1,250 square feet.
At the same time, house-hunting TV shows portray affordable, updated, move-in-ready homes for any budget, although this is rarely the case. These influences could be why 57% of people said Gen Z is the most unrealistic about what they deserve in a home. Almost a third (31%) said Gen Z is the most entitled regarding homeownership expectations.
“Younger generations don’t want to start their independent life sharing a two-bedroom apartment with a small bath and a carport,” said Jeff Adams, a Real Estate Investing Strategist atHome Investors Zone in Houston. “They want what they grew up in — and what they see in the media.”
Most Agree that Affordability’s the Problem, but Who’s to Blame?
A plurality of potential homebuyers in each age group surveyed by Clever Offers said they prioritize affordability. A majority also said the U.S. is facing an affordable housing crisis and that the average American can’t afford to buy a house. However, that’s where the similarities end and the finger-pointing begins.
About a third of those surveyed blame millennials for the lack of housing inventory and the affordable housing crisis. Around a quarter blame baby boomers for both. The reality is more nuanced.
On the one hand, baby boomers took advantage of the housing market in which they grew up and made the most of the opportunities to buy homes early, building equity over time. However, experts say it’s also fair to critique the policies these older generations often shaped or supported.
“The housing crunch facing millennials and Gen Z is a result of things like restrictive zoning laws or even the hesitation to allow for higher-density neighborhoods,” said Ryan Fitzgerald, owner ofRaleigh Realty in North Carolina. “Younger generations are up against obstacles that boomers never had to deal with.”
Approximately 87% of millennials think government policies should do more to make homeownership accessible, compared to 75% of boomers and 78% of Gen Xers. More young adults (39%) would also be willing to pay higher taxes so the government could address affordable housing, nearly twice as many as boomers.
Despite Challenges, Millennials Are Most Optimistic
Though a challenging housing market persists, 60% of millennials say they’re optimistic about owning a home, compared to just 38% of older adults. This could be logical — after all, millennial renters still have decades ahead of them to continue saving, while boomer non-owners are in or nearing retirement and have less room to improve their financial picture.
Millennials are also two to five times more likely to make some sacrifices to own a home than boomers, including taking on a second job, buying a fixer-upper, selling their possessions, or even skipping meals. In addition, they’re more tech-savvy and know how to findfirst-time homebuyer programs to make their purchase more affordable.
“Millennials are betting on innovation, whether it be using a new loan structure, fractional ownership models, co-buying, or technology-driven service models that de-mystify accessibility,” Watts said. “That optimism comes from a belief that even if the traditional paths are blocked, new ones can be built.”
