The Staggering Homeownership Gap Between Gen Z And Boomers

For generations, homeownership has been part of the American dream. Unfortunately, this dream may feel out of reach for Gen Zers, who are aged 14 to 29 in 2026, as their homeownership rate has been far below baby boomers'. According to a 2026 Motley Fool survey, only 27% of respondents aged 18 to 29 had bought a home, as of 2025. This is in stark contrast to 42% of baby boomers who had bought their first home during their peak buying ages of 25 to 34 years old, and the 78% of the generation that have ever owned a home.

In part, rising home prices could be to blame for this wide generational gap. The median home price was $328,150 in 2020, compared to $415,400 in 2025, according to the Federal Reserve. Higher mortgage rates have also contributed: For instance, the Federal Reserve also reports the 30-year fixed mortgage rate was 3.72% on January 2, 2020, versus 6.55% as of July 16, 2026. While many factors impact home prices, the one-two punch of rising property costs and mortgage rates means higher mortgage payments for buyers. For instance, the monthly mortgage payment for a median-priced home in 2020 was $1,211.31 at a mortgage rate of 3.72%, assuming a 20% downpayment. Meanwhile, a mortgage on a median-priced home in 2025 would be $2,118 at a rate of 6.58%.

Higher mortgage rates and home prices might explain why homeownership rate trends haven't improved over the last few years. Of those under age 35, only 38.7% owned a home in Q4 2022, compared to 35.2% in Q2 2026, per the Census Bureau. Moreover, the Motley Fool notes the majority of Gen Zers who bought a home were 18 to 24 years old, when home prices and mortgage rates were lower. Meanwhile, the generational gap between Gen Zers and baby boomers persists: As of 2025, the Federal Reserve reports only 24% of 18- to 29-year-olds own a home, compared to 83% of those aged 60 and over.

Additionally, Gen Z's income has not kept up with home prices, meaning its members lack the monthly income necessary for a mortgage payment. The Motley Fool survey highlights this income shortfall: 74% of Gen Zers said they'd never earned the 2018 median income of $63,000, while only 45% of baby boomers surveyed could say the same. The gap between income and housing costs could contribute to why 67% of Gen Zers stated they've struggled to afford their housing payments, compared to 36% of baby boomers, according to a 2026 Redfin poll conducted by Ipsos. Ultimately, these affordability challenges might explain the generational homeownership gap and why some question whether future generations will ever be able to afford a home.