Young Americans, particularly from Generation Z, are creatively navigating an increasingly unaffordable housing market as they pursue homeownership. A recent survey from the Bank of America Institute reveals a notable trend: many young people are supplementing their incomes with additional jobs or collaborating with siblings to make their dream of owning a home a reality.
The ongoing challenges in the housing market have not deterred the aspirations of younger generations. According to the Bank of America’s annual Homebuyer Insights Report, the desire for homeownership remains a strong motivator for both Gen Z and Millennials. Despite significant financial burdens, many are prepared to undertake sacrifices now to secure long-term financial stability through property ownership.
The survey indicates that approximately 30% of Gen Z homeowners financed their down payment by taking on extra work, a gradual increase from previous years—28% in 2024 and 24% in 2023. This trend underscores the lengths to which young buyers are willing to go to achieve homeownership, demonstrating an ongoing commitment despite mounting obstacles.
Additionally, there is a marked rise in co-ownership, with 22% of Gen Z homeowners purchasing their homes in tandem with siblings. This figure has surged from just 12% in 2024 and a mere 4% in 2023. The concept of co-purchasing is gaining traction, aligning with findings from a 2024 survey conducted by JW Surety Bonds, which revealed that nearly 15% of all Americans have bought a home together with someone other than a partner.
Moreover, familial financial support remains a prevalent fixture in home buying strategies. A Redfin study from the previous year found that over a third of planning homebuyers from the Millennial and Gen Z demographics expect parental assistance with their down payments. The Bank of America report further highlights this trend, indicating that 21% of anticipated Gen Z buyers intend to rely on family loans for their down payments—substantially higher than the overall figure of 15% among survey respondents.
Matt Vernon, Bank of America’s head of consumer lending, emphasized in the report the resourcefulness of younger generations. “Even with the challenges they face, younger generations still understand the long-term value owning a home offers them, and many are doing what it takes to get there,” he stated. “They are finding creative ways to afford down payments and working hard to improve their financial futures.”
The homeownership rate for Americans under 35 fell to 36.3% in the fourth quarter of 2024, the lowest level since early 2019. However, it saw a slight increase to 36.4% in the first quarter of 2025, according to the U.S. Census Bureau. This trend indicates a challenging environment for young buyers, as rising home prices and interest rates continue to complicate the achievement of homeownership.
The Bank of America survey echoed sentiments of uncertainty that permeate the housing market. Sixty percent of homeowners and prospective buyers expressed indecision about whether now is a favorable time to purchase a home, an increase from 57% the previous year and 48% in 2023. Nevertheless, a larger segment of prospective buyers believe that current market conditions are more favorable than they were a year ago. Many are choosing to hold off on purchasing in anticipation of lower mortgage rates and property prices in the future.
Vernon noted this proactive approach among potential buyers: “They may be waiting for the right moment, but they’re not standing still. They’re building credit, saving for down payments, and paying attention to the market so they can buy when the time is right for them.”
Indicators suggest a potential turning point in the housing market, shifting towards a more favorable landscape for buyers. Data from Redfin indicates that home-sale prices in eleven of the fifty largest U.S. metropolitan areas are already declining, signaling a broader trend that could develop later in the year.
Redfin forecasts that the median sales price in the United States may remain stable in the third quarter on an annual basis, followed by a decrease of approximately 1% in the fourth quarter. Similarly, Zillow’s projections from April suggested home values might drop by 1.9% this year, reversing an earlier anticipation of a 0.6% increase.
Zillow researchers attributed the potential for price declines to increased housing inventory combined with sustained high mortgage rates. “The combination of rising available listings and elevated mortgage rates is signaling potential price drops by year’s end,” they stated. “With increased supply, buyers are gaining more options and time to decide, while sellers are cutting prices at record levels to attract bids.”
This changing landscape reflects broader economic trends influencing the housing market, including shifts in buyer behavior and financial strategies among younger generations. As Gen Z and Millennials increasingly explore innovative solutions to navigate financial hurdles, their experiences may redefine the path to homeownership in the years ahead.
The findings from these reports emphasize not only the determination of young buyers but also the importance of adaptability in a market characterized by fluctuating economic conditions. As they continue to face challenges, understanding the dynamics of the housing market will be crucial for this demographic, laying the groundwork for their future financial endeavors.