- Gen Z is more optimistic about owning a home compared to millennials, per a Redfin survey.
- Previous surveys found that Gen Z is also ahead when it comes to home purchases.
When it comes to owning a home, Gen Z actually has a slightly rosier outlook on the prospect compared to millennials, according to a new survey from Redfin.
Of the 1,340 members of Gen Z surveyed, around 12% said they believed homeownership would not be possible in their lifetime. Meanwhile, 18% of millennials of 1,973 surveyed believed the same, per the report.
The reason for the pessimism? Nearly half of the millennial respondents compared to 33% of Gen Zers said that the ability to save up for a down payment was a barrier to owning a home.
Millennials being more concerned about saving up for a home falls in line with studies that found Gen Z is doing a better job of holding on to its savings, per the Center for Generational Kinetic's State of Gen Z report.
Additionally, Redfin reported in April that Gen Zers are ahead when it comes to purchasing homes. In 2022, 30% of 25-year-olds owned their home — slightly higher than the 28% rate for millennials and 27% rate Gen Xers when they were that age, the report found.
Redfin Chief Economist Daryl Fairweather previously told Insider that a better labor market compared to the one millennials were faced with following the 2008 recession, better wages, record-breaking low mortgage rates in 2021, and even remote work options all helped fuel this.
However, both generations are still flailing when it comes to purchasing a home, per the recent survey. Gen Zers and millennials both expressed concerns that high home costs and student loan debt, among other factors, would prevent them from being homeowners.
As for why this has become an issue, Fairweather writes in the survey that home prices are just too high, and these younger generations just don't have the right assets, such as previous homes, to build equity.
"Many young people don't have a choice between renting and buying," Fairweather writes. "They're renting their home because even though rent payments have increased, too, it's still more affordable than buying in much of the country — and renters don't need a down payment."