Gen Z: 5 Creative Ways To Afford Your First Home Purchase
Written by
Emily Fowler
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
For Gen Z, the dream of owning a home is looking more like a challenge than ever before. With high housing prices and steep interest rates, the idea of buying that first house can feel daunting — if not impossible. As of 2023, just 26.3% of adult Gen Zers owned a home, a slight increase from 26.2% in 2022, according to Redfin. In contrast, 54.8% of millennials, 72% of Gen Xers and 78.8% of baby boomers currently own homes.
Despite these odds, Gen Zers are determined to find a way. A recent InMyArea.com survey found that 32% of Gen Z non-owners plan to buy a home within the next five years, while 38% aim for longer. Although 30% have no plans or remain unsure — the lowest rate among the generations — many are exploring creative strategies to make homeownership a reality. Here are five ways Gen Z is working to buy their first homes.
Relocating to Affordable Markets
Remote work has changed the landscape of home buying, particularly for Gen Z. Without the need to be tied to one city, 22% are taking advantage of lower costs in places where their budgets can stretch further. According to Realtor.com, some of the most popular destinations for this generation are smaller or mid-sized cities where they can buy more affordably than in big urban centers.
Pursuing Foreclosed or Fixer-Upper Properties
For many in Gen Z, foreclosures and fixer-uppers present an opportunity. While these types of properties require an appetite for renovations and repairs, they also offer below-market prices. Distressed properties are letting Gen Z buyers get into the market, with 7% buying foreclosed properties and 15% choosing fixer uppers over move-in-ready homes.
For those who are willing to put in the work, these homes provide a way to start building equity without the full cost of a new or ready-to-live-in property.
Juggling Multiple Jobs or Side Hustles
In today’s gig economy, Gen Z is no stranger to juggling multiple income streams, and for many, that’s a key strategy to afford their first home.
Many are maximizing their income with freelancing, side gigs or rideshare driving, with the InMyArea survey sharing that 33% of Gen Z homeowners worked multiple jobs to make homeownership a reality. Freelancing platform Upwork also reports that 53% of Gen Z freelancers now work full-time hours on freelance projects, preferring flexibility over the traditional 9-to-5.
Leveraging Family Support
Family support is proving to be a key factor in achieving homeownership, with 27% of Gen Z homeowners having inherited or been gifted property — the highest rate across all generations in the survey. Another 18% received financial assistance from family, and 11% bought property from friends or family members.
These contributions help young buyers offset the high costs of homeownership, making it more attainable for those with family resources.
Exploring Government Grants and Assistance Programs
State and federal assistance programs and grants aimed at first-time homebuyers are also helping Gen Z buyers afford a home. These programs lower barriers by reducing initial costs or offering down payment assistance, providing an entry point that might otherwise be out of reach. About 8% of Gen Zers are using these resources, taking the time to research programs that can provide vital financial support.
Gen Z is proving that with flexibility, resilience and creativity, they can tackle the traditional barriers to homeownership.
More From GOBankingRates
