In 2022, San Jose, CA, was the hottest market for millennial homebuyers in the United States. Millennials in San Jose were responsible for nearly 64 percent of the house purchase requests. Denver, CO, and Boston, MA, completed the top three with over 60 percent of purchase requests. Which are the states with the youngest population in the U.S.? It should come as no surprise that the demographic composition plays a central role in the development of the housing market in different states. In 2020, the median age in the United States was 38.2 years, but some states, such as Alaska, District of Columbia, and Utah had much younger population. In contrast, Maine, Puerto Rico, and Hampshire had the highest median age of population. Millennials’ attitudes towards homeownership While many millennials have given up on homeownership, one in three people share that they are in the process of saving for a home purchase. These results suggest that young Americans have not entirely given up on the American dream of owning a home of their own.

After millennials, Gen Z, or the adults born between 1997 and 2003, are next in line to enter the U.S. housing market. According to a survey conducted among over 15,000 respondents in the U.S., approximately 25 percent of Gen Zers were planning to purchase a home in the next 12 months as of June 2023. This was an increase from the same quarter in 2022 when 18 percent of Zoomers were planning a home purchase. As house prices and interest rates continue to rise, the fluctuation in homebuyer sentiment can be seen among all generation groups.

In recent years, more and more Gen Zers and Millennials are entering the housing market as home buyers or renters. In 2021, almost half of rent applications in the United States were submitted by Millennial apartment seekers. In comparison, Baby Boomers and older were responsible for only ten percent of applications. According to a survey conducted in 2021, a large percentage of Millennials and Gen Zers are not currently saving for a house.

According to a June 2020 survey, 45 percent of Millennials in the United States wishing to buy a house within the next year expect that they will receive financial assistance from family and friends. Around four in five respondents said that they wanted to move either within their current city (49 percent) or to nearby suburbs (31 percent).Although Millennials have already entered the U.S. housing market, homeownership for this demographic is still much lower than for any other age group in the United States.

In 2022, Salt Lake City, Utah, was the hottest market for Generation Z home buyers in the United States. Gen Zers in Salt Lake City were responsible for over nine percent of mortgage requests in that metropolitan area. According to the source, affordability plays a role in choosing a home: The average loan amount in the most popular housing markets was between roughly 198,000 and 340,000 U.S. dollars. In 2021, the median price of a single-family home stood between 350,000 U.S. dollars and 538,000 U.S. dollars, depending on the region.

After Millennials, Gen Z, or the adults born between 1997 and 2003, are next in line to enter the housing market in the United States. According to a survey conducted among over 15,000 respondents in the U.S., approximately 47 percent of Gen Zers who were planning to purchase a home in the next 12 months were also actively looking for one as of June 2022. In comparison, in the second quarter of 2021, this percentage was much higher at 64 percent. During the same period, roughly 18 percent of U.S. adults were planning a home purchase in the next year.

According to a survey conducted among over 15,000 respondents in the U.S., between 36 and 55 percent of home buyers who were actively looking to buy a home in the next 12 months were not able to find one at a price they could afford as of the second quarter of 2023. Approximately 37 percent of millennials struggled to find a home at an acceptable price, while for Baby Boomers, this percentage was higher at 55 percent. Accroding to the source, the main reason for the decline across all generations except for baby boomers was that respondents reported other reasons, such as getting outbid by other buyers or the inability to find a home in the desired neighborhood. In the second quarter of 2023, roughly 15 percent of U.S. adults were planning a home purchase in the next year.

Owning a home has traditionally been an integral part of the "American dream", but for millennials entering the housing market has been notoriously difficult. Between 2018 and 2022, the share of millennials in the United States who expect to always rent their home increased from 13.3 to 24.7 percent. As the youngest demographic in the housing market, people under 35 years have a homeownership rate much lower than any other generation.

The homeownership rate in the United States amounted to nearly 66 percent in the third quarter of 2024. While there are many factors that affect people’s decision to buy a house, the recent decrease can be attributed to the higher mortgage interest rates, which make taking out a mortgage less affordable for potential buyers, especially considering the surge in house prices in recent years. Which factors affect homeownership? Age and ethnicity have a strong correlation with homeownership. Baby boomers, for example, are twice as likely to own their home than Millennials. Also, the homeownership rate among white Americans is substantially higher than among any other ethnicity. How does the U.S. homeownership rate compare with other countries? Having a home is an integral part of the “American Dream”. Compared with selected European countries, the U.S. ranks alongside the United Kingdom, Cyprus, and Ireland. Many countries in Europe, however, exceed 80 percent homeownership rate.

The homeownership rate in the United States rose slightly in 2022, reaching the highest figure since 2011. However, in the third quarter of 2024, the proportion of households occupied by owners declined to 65.6 percent. The U.S. homeownership rate was the highest in 2004 before the 2007-2009 recession hit and decimated the housing market. Homeownership since the recession The rate of homeownership in the U.S. fell in the lead up to the recession and continued to do so until 2016. In spite of this trend, the share of Americans who perceived homeownership as part of their personal American dream remained relatively stable. This suggests that the financial hardship caused by the recession led to the fall in homeownership, rather than a change in opinion about the importance of homeownership itself. What the future holds for homeownership Homeownership trends vary from generation to generation. Homeownership among Americans over 65 years old is declining, whereas most Millennial renters plan to buy a home in the near future. This suggests that homeownership will remain important in the future, as Millennials are forecast to head most households over the next two decades.

This statistic shows the opinions on change in home prices in the next 6 months according to adults in the United States in the fourth quarter 2019, by age group. Almost half of the Millennial respondents believed that house prices would go up in the following six months, whereas 12 percent believed that they would go down.

The primary reasons for purchasing a home in the United States in 2023 varied among home buyers. Approximately one in four homebuyers bought a home because they desired to have their own home. Having one's own home was mainly considered by millennial buyers during their home buying process.

In 2022, Salt Lake City, Utah, had the least affordable housing among the top ten metros with the highest share of Gen Z home buyers in the United States. The average requested mortgage loan amount by Gen Zers was 340,000 U.S. dollars. Between 18 and 23 percent of mortgage applications in the metros included in this statistic came from Gen Z home buyers. While house prices do in fact influence Gen Zers' choice, Salt Lake City, UT, had both the largest share of Gen Z mortgage requests and the highest loan amount.

Little Rock, Arkansas was the most popular metropolitan area among Gen Z renter applicants in the United States in 2020. The Gen Z renter applications ranged from 34 percent in Little Rock, AR to 11 percent in San Jose, CA which ranked 36th in the metropolitan areas preferred by Gen Z renters.

In the same year, Gen Z apartment seekers were the second largest demographic group in the housing market after Millennials.

Washington, D.C. had the highest net migration for 18- to 24-year-olds in 2021, making it the most attractive city among the generation Z population. The number of Zoomers who moved in less the number of Zoomers who moved out of Washington stood at 12,912. Columbia, SC, and Boston, MA, were the two other cities where this figure where the net migration exceeded 10,000.

In 2022, Oklahoma City, OK, had the lowest average mortgage down payment among the top ten metros with the highest share of Gen Z home buyers in the United States. Gen Zers looking to buy a home there had to save on average roughly 19,000 U.S. dollars for a down payment. Between 18 and 23 percent of mortgage applications in these 10 metros came from Gen Z home buyers. While house prices do in fact influence Gen Zers' choice, the metro with the largest share of Gen Z mortgage requests was Salt Lake City, Utah.

The homeownership rate was the highest among Americans in their early 70s and the lowest among people in their early 20s in 2023. In that year, approximately 81 percent of individuals aged 70 to 75 resided in a residence they owned, compared to approximately 23.6 percent among individuals under the age of 25. On average, 65.9 percent of Americans lived in an owner-occupied home. The homeownership rate was the highest in 2004 but has since declined.

In 2022, the average credit score of Gen Z mortgage applicants in the top 10 metros for Gen Z home buyers in the United States was between 677 and 691. Salt Lake City, UT, which was the hottest market for Generation Z home buyers, had an average credit score of 678. Out of the 10 most popular metros, Cincinnati, OH, was the most affordable.

In 2021, the most popular cities in the U.S. for Gen Z renters had over 40 percent share of Gen Z applicants. Boulder, CO had the highest share of Gen Z renter applicants of 65 percent.

While these cities had the highest share of Gen Z apartment seekers in 2021, different cities registered a significant growth in the share of Gen Z applicants between 2020 and 2021. These cities are likely to join this list in the near future.

According to a survey conducted among 2,500 American apartment renters in September 2020, washer and dryer was the most important apartment amenity for renters of Gen Z, Millennial, Gen X, and Baby Boomer renters. One of the biggest generational differences concerned the youngest renters surveyed. The share of respondents who found smart locks and thermostats important was 12 percent, while for other respondents it was between five and seven percent.