Gen Z Rethinks Homeownership

At this point, many teenagers aren’t thinking about their future, particularly buying a home. It may feel far away, but purchasing a home has become significantly more difficult in recent years. A new type of investment model has shaken up the housing market by buying up homes and driving up rent prices. With these changes already reshaping the market, it’s reasonable to expect even greater challenges ahead.

According to a 2024 Bank of America survey, “More than half of Gen Z adults say they don’t make enough money to live the life they want due to the high cost of living.” The rate of Americans buying homes—particularly those in their late 20s with some financial stability—has already decreased. According to the National Association of Realtors, “The share of first-time home buyers dropped to a record low of 21%.” This raises the question: if people are struggling to buy homes now, how will young Americans afford them in the future?

“The best way for students to prepare themselves for uneasy living situations in the future would be to ‘Save Now, Save Often,’” said Macroeconomics teacher Zachary Constanti. “The earlier students begin saving, the more capital they will have to manage higher costs in the future.” As the rest of Gen Z enters this new reality, it is likely more people will choose to rent—often at higher rates. It’s important for us to consider the situation ahead and start preparing sooner rather than later.