New Zillow survey finds younger generations
still believe owning a home is part of the American dream, but they
don't know how they'll achieve it
SEATTLE, April 19,
2023 /PRNewswire/ -- The American dream of
homeownership is not dead, even for Gen Zers and
millennials1, but they believe their path to
get there will be challenging and may even require some luck given
the affordability challenges facing many buyers today. New research
from Zillow® finds that 52% of Gen Zers and 57% of
millennials who don't currently own a home believe they'd need to
win the lottery to afford one.
Outside of winning the lottery, large shares of both generations
(95% of Gen Zers and 94% of millennials) say they would have to
make some life changes in order to make their dream of
homeownership a reality. About 40% of millennials say they would
need to get a second or third job, and 28% of Gen Zers say they'd
have to make a career change in order to afford a home right
The housing affordability crisis is the worst it's been in at
least 15 years. Home values are up 3% over the past year, but
during the peak of the pandemic, home values were rising in the
double-digits. Record-fast home value growth has already been
squeezing budgets, and now rising mortgage rates are compounding
the affordability challenges many buyers are facing.
"These findings highlight the gap between Gen Z and millennials'
dream of owning a home and their ability to actually make it
happen," said Zillow's home trends expert Amanda Pendleton. "Mortgage rates have been on
the rise since last year, sending monthly housing costs through the
roof — the typical monthly mortgage payment is now $431 higher than a year ago. Combine rising rates
with record-breaking home value appreciation and it's easy to
understand why younger generations are wondering how they'll ever
be able to afford a home."
When it comes to a down payment — a major barrier to
homeownership — 36% of Gen Zers say they'd give up their beloved
social media if it meant magically having enough cash to put down
on a starter home.
To put the down payment challenge in perspective, 20% down on
the typical U.S. home ($334,944)
means coming up with nearly $67,000.
In pricier markets, a down payment can easily exceed six
Many buyers don't realize a 20% down payment isn't usually
required. Shoppers can use Zillow's down payment assistance
tool to see what local resources may be available to them to
help make homeownership a reality.
Still, these two generations are optimistic about the future.
About two-thirds of the Gen Zers and millennials surveyed say it's
realistic to think they can buy a home within the next five
For first-time buyers looking to get in the game this spring,
here are a few tips that could help make the dream of homeownership
Understand what you can afford. Buyers
should start with a mortgage calculator and affordability
tools to understand what goes into a mortgage payment and what
they can realistically afford on a monthly basis. Then they can use
Zillow's new app filter to shop for homes they are confident
are within their range of all-in monthly costs instead of looking
at list prices, clarifying a key source of confusion for
Find an agent you trust. Zillow's agent
finder tool helps buyers find the best agent to fit their
specific needs. Buyers can read reviews of top-rated real estate
agents in their area and reach out to them directly.
Get pre-approved for a mortgage — not just
prequalified. Though it's a more extensive financial
check, pre-approval will give the buyer — and the seller — more
confidence in the buyer's ability to finance the home. A Zillow
survey2 finds 86% of sellers prefer a
buyer who has been pre-approved, as opposed to pre-qualified, for a
mortgage. Buyers can start the pre-approval process
online with Zillow Home Loans.
In order to buy a
now, I would need to:
Give up all spending on
dining and entertainment
Get a second or third
Move to a different
Marry someone with
This survey was conducted online within the United States by The Harris Poll on behalf
of Zillow March 16–20, 2023. Among the 2,066 U.S. adults ages 18
and older surveyed, 306 were Gen Z adults ages 18–26 and 585 were
millennials ages 27–42. The sampling precision of Harris online
polls is measured by using a Bayesian credible interval. For this
study, the sample data is accurate to within +/- 2.8 percentage
points using a 95% confidence level. For complete survey
methodology, including weighting variables and subgroup sample
sizes, please contact email@example.com.
About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate
to make it easier to unlock life's next chapter. As the most
visited real estate website in the United
States, Zillow and its affiliates offer customers an
on-demand experience for selling, buying, renting, or financing
with transparency and ease.
Zillow Group's affiliates, brands and subsidiaries include
Zillow®; Zillow Premier Agent®; Zillow Home Loans™; Zillow Closing
Services™; Trulia®; Out East®; StreetEasy®; HotPads®; and
ShowingTime+ ℠, which houses ShowingTime®, Bridge
Interactive®, dotloop®, and interactive floor plans. Zillow Home
Loans, LLC is an Equal Housing Lender, NMLS #10287
1 71% of Gen Zers and 86% of
millennials surveyed believe owning a home is part of the American
2 Zillow Group Population Science
conducted a series of nationally representative surveys, each
sampling between 1,000 and 2,100 household decision-makers who
bought in the past two years, sold in the past year or intend to
buy a home in the next 12 months. The study was fielded from March
through April 2022. To learn more
about survey methodology, contact firstname.lastname@example.org.
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