7 Creative Financial Strategies Gen Z Uses To Buy Their First House
Written by
Emily Fowler
Edited by
Zuri Anderson
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Since Gen Z came of age as potential homebuyers, there’s been plenty of questions around whether they’ll be able to make owning their own homes a reality. With student debt, high interest rates and steep housing prices, the path to buying property isn’t easy for this young generation.
In 2024, about 26.1% of Gen Zers owned a home, according to Redfin. That’s roughly the same amount as in 2023 and 2022, and in a tough economy, staying steady isn’t a failure — it’s proof that Gen Z can still find a way into the housing market.
Heather Myers, real estate advisor and co-owner of Snyder Real Estate Group, told GOBankingRates she sees this play out in real time.
“The old narrative that young people ‘can’t afford to buy’ is shifting — because Gen Z isn’t waiting for the perfect set of circumstances,” she said.
Here are seven creative methods she’s seen Gen Z use to make homeownership a reality.
House Hacking
Buying a bigger property with extra space to rent out is a popular approach, according to Myers. Rental income helps cover the mortgage, making homeownership more affordable, particularly in areas where rents are high.
Teaming Up With Friends or Family
Rather than waiting to qualify on their own, many are buying with siblings, friends or relatives. Splitting the down payment, closing costs and monthly bills increases buying power, opening the door to bigger properties or better locations.
Living With Family To Save
For some, the quickest path to a down payment is cutting out rent altogether. Moving back in with family for a year or two lets Gen Z funnel thousands directly into savings. The key is setting strict rules to avoid dipping into those funds early.
Tapping into Family Equity
Parents or grandparents with significant home equity can provide an edge. That support might come as a down payment gift, co-signing a mortgage or even tapping a home equity line of credit (HELOC). While not an option for everyone, it can be a game-changer for those with family resources.
Using Creative Financing Tools
Gen Z buyers are leaning into non-traditional financing tools. Veterans’ affairs (VA) loans can eliminate down payment requirements for eligible buyers. Seller credits can reduce upfront costs.
And “2-1 buydowns” temporarily lower mortgage interest rates, “giving them breathing room as they adjust to homeownership,” said Myers.
Prioritizing Location Hacking
Instead of holding out for the perfect house, Gen Z is targeting up-and-coming neighborhoods, longer commutes or fixer-uppers to stretch budgets. Myers calls it a forward-thinking mindset that can set Gen Zers up for long-term equity growth.
Digital Savings and Side Hustles
Growing up online has made Gen Z fluent in digital money tools. High-yield savings accounts, automatic transfers and budgeting apps streamline their progress toward a down payment. On top of that, side hustles, from freelancing to rideshare driving, generate extra cash that goes straight into savings.
“Gen Zers are smart — they know real estate is a long-term investment and the key to building wealth,” said Myers. By leaning on family, leveraging technology and rethinking the path to ownership, the youngest buyers are rewriting the rules of the market.
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