The homeownership rates of Gen Z and millennials plateaued in 2024, according to a new data report from Redfin (NASDAQ: RDFN).
A little more than one-quarter (26.1%) of Gen Zers were homeowners in 2024, essentially unchanged from 2023 (26.3%) and 2022 (26.2%). Before that, the Gen Z homeownership rate had increased each year since Gen Zers started aging into potential homeownership from 2017 through 2021.
As for millennials, 54.9% of that demographic owned their home last year, essentially unchanged from 2023 when it was 54.8%. Prior to 2024, the millennial homeownership rate had increased each year since 2012.
Further down the age spectrum, older Americans saw their homeownership rates increase slightly: 72.9% of Gen Xers owned their home in 2024, up from 72% in 2023, while 79.6% of baby boomers owned their home, up from 78.8%. Redfin noted those small increases were standard for older generations.
Redfin also compared current and historic data to determine homeownership trends among younger people. For example, while 32.6% of 27-year-old Gen Zers owned their home in 2024, compared to 38.4% of Gen Xers when they were 27 and 40.5% of baby boomers when they were 27. With millennials, 56% of 35-year-olds owned their home in 2024, compared to 59.4% of Gen Xers and 61.5% of baby boomers when they were 35.
“Homeownership is still a symbol of success and stability for many Americans, but the nation’s culture is shifting with the economic times,” said Redfin Chief Economist Daryl Fairweather. “Some young people are placing less emphasis on owning their own home because they’re prioritizing flexibility, while others continue renting because they can’t afford to buy. Buying a home is still typically a good financial investment, but for young people who don’t have the desire or means to do so, there are other viable investments that, unlike buying a home, don’t require a huge down payment. Those people might consider investing in the stock market, their own business, or education.”
