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Roughly one-third (30%) of 25-year-olds owned their own homes in 2022, according to new data published by Redfin (NASDAQ:RDFN).

This healthy percentage of Gen Z homeowners can be attributed to the pandemic era, when young adults who enjoyed strong financial health in a vibrant job market where able to take advantage of low mortgage rates – the typical mortgage rate for homebuyers under 25 using a conventional loan was 3.3% in 2020 and 3.1% in 2021.

However, today’s 25-year-old homeowner is paying more for their American Dream. Redfin noted that a 25-year-old’s median monthly mortgage payment was $1,013 in 2021, which is 16% of their $74,900 median income. In comparison, a 25-year-old in 1990 had a median $904 monthly payment, or 16% of their $69,419 median income (adjusted for inflation).

“The rising tide lifted Gen Z homebuyers in 2020 and 2021; they were part of the pandemic-driven homebuying frenzy,” said Redfin Chief Economist Daryl Fairweather. “Record-low mortgage rates, remote work providing freedom to move somewhere more affordable and skyrocketing rental costs motivated some Gen Zers to break into the housing market.”

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Fairweather pointed out that “government stimulus payments, the pause on student loan repayments and the fact that many young adults lived with family during the lockdowns also helped Gen Zers save money” also helped bring more Gen Zers into homeownership. Last year, the average residence purchased by someone under 25 cost $235,000 and came with a $10,000 down payment (on a conventional loan).

Redfin added that 26% Gen Zers as a whole own their home, compared with 79% of baby boomers, 71% of Gen X and 52% of millennials.

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