As Gen Z Enters the Housing Market, The Generation Will Write New Rules for Homebuying
As Gen Z enters the housing market, the generation will encounter challenges both familiar and unfamiliar to previous generations. These challenges may include: high mortgage rates and home prices could force many to explore alternative markets and creative strategies like house hacking; tech tools and digital platforms are becoming central to how Gen Z researches, finances and navigates homebuying decisions; and this generation is redefining ownership to embrace shared purchases, multi-use properties and nontraditional paths to affordability.
According to Cotality, When Sonia turned 25, she found herself doing something she never expected so soon — scrolling real estate listings on her lunch break. Like many in her Gen Z cohort, Sonia wasn’t necessarily ready to buy a home, but the rising cost of rent and the uncertainty of her long-term housing options nudged her toward something more stable. Still, entering the housing market wasn’t a simple as she had imagined.
With mortgage rates hovering near 7% and home prices far outpacing what she earned, Sonia quickly realized that buying in the city she lived in wasn’t realistic. Instead, she started looking in smaller towns — places like Fargo and Omaha — where the cost of a starter home didn’t completely derail her financial future. But even in more affordable markets, the numbers were tight. A modest $250,000 home with a 10% down payment translated into a monthly mortgage that took up nearly 40% of her income. That didn’t even include rising property taxes or homeowners’ insurance.
To make it work, Sonia got creative. She relied heavily on tech tools, using online calculators, virtual tours, and AI-powered apps to explore neighborhoods, estimate returns, and organize her finances. Then, finally, she bought a duplex, moved into one side, and began renting out the other. It was her version of house hacking — a strategy that more and more Gen Z buyers are turning to as they try to offset monthly costs and qualify for loans.
Sonia wasn’t alone in her approach. Her generation is leaning into new models of ownership: teaming up with roommates, buying homes with friends, or sharing space in ways previous generations might not have considered. They’re bringing a different mindset to homeownership — one shaped by economic headwinds, student debt, and a lifetime of watching their parents navigate the highs and lows of real estate.
