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There are 68 million Gen Zers in America, born between 1997 and 2012, and nearly half of them want to buy a home by 2029, according to a Realtor.com® survey.
Until then, more than half of this generation still lives with family, which could account for how Generation Z has been able to save more money than any other generation, according to a new study.
But if they have an abundance of cash, how is it they're still not homeowners?
The share of Gen Z buyers and sellers aged 18 to 24 made up just 3% of buyers and 2% of sellers, according to the most recent National Association of Realtors® Home Buyers and Sellers Generational Trends Report.
Gen Z is entering homeownership with the lowest household incomes, NAR reports, which aligns with Gen Z's entry-level income status.
Gen Z's average annual income is $45,000. Members of Gen Z are unlikely to be married and unlikely to have children under the age of 18 in their home.
Another key point from NAR's findings is that Gen Z buyers tend to have a higher average homeownership cost relative to their income compared with the typical buyer. This underscores the financial challenges they face in securing a home.
How much is needed for a down payment in 2025?
Generally, it is believed that conventional loans warrant 20% down—but that's not always the case.
According to data from the NAR, the average down payment for first-time home buyers is just 9%.