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- This Generation Is Buying a Shocking Amount of Homes (Hint: It's Not Boomers)</p>
<p>Laura BeckJuly 14, 2025 at 2:02 AM</p>
<p>andresr / Getty Images</p>
<p>We've all seen the headlines about millennials struggling with homeownership and boomers aging in place, but there's another generation quietly making waves in the housing market. That's right; Generation Z — people born between 1997 and 2012 — is defying expectations and buying homes at rates that are surprising even real estate experts.</p>
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<p>Despite facing some of the most challenging housing market conditions in decades, Gen Z is not only entering the market but doing it in record numbers. Here's what's really happening with America's youngest homebuyers.</p>
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<p>The Numbers That Tell the Story</p>
<p>According to Intercontinental Exchange, Gen Z now accounts for 1 in 4 loans issued to first-time homebuyers. That's a remarkable statistic for a generation whose oldest members are only 28 years old.</p>
<p>Even more impressive? Redfin data shows that Gen Z's homeownership rate is actually outpacing what millennials and Gen X achieved at the same age. While the overall homeownership rate for adult Gen Zers held steady at about 26.3% in 2023, this represents a generation that's tracking ahead of where their parents were at similar life stages.</p>
<p>For context, 24-year-old Gen Zers have a homeownership rate of 27.8%, compared to 24.5% for millennials when they were 24 and just 23.5% for Gen Xers at that age.</p>
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<p>Why Gen Z Is Succeeding Where Others Struggled</p>
<p>What's enabling this generation to break into homeownership despite sky-high prices and mortgage rates? Several factors are working in their favor.</p>
<p>First, many Gen Z buyers bought homes during the pandemic when mortgage rates hit historic lows. While current buyers face rates around 7%, those who bought in 2020-2022 locked in rates below 3%. This timing advantage helped establish a foundation of Gen Z homeowners who could afford monthly payments that would be impossible today.</p>
<p>What's more, the rise of remote and hybrid work has given Gen Z unprecedented location flexibility. They're willing to live outside of pricier cities if it means they can own property.</p>
<p>The Regional Divide</p>
<p>Gen Z's success isn't uniform across the country. According to Intercontinental Exchange data, younger buyers are finding more opportunities in affordable states. Indiana, South Dakota and Kentucky see Gen Z comprising over 30% of first-time homebuyer activity.</p>
<p>Meanwhile, expensive coastal markets remain largely out of reach. Washington D.C. has the lowest share of Gen Z buyers at just 7% of all purchase mortgages, while California follows closely behind at 8%.</p>
<p>The Down Payment Reality</p>
<p>One key factor in Gen Z's homebuying success is their pragmatic approach to down payments. ICE data shows first-time homebuyers put down an average of $49,000, compared to $134,000 for repeat buyers. Gen Z buyers are also leveraging lower down payment options like FHA loans, which require as little as 3.5% down.</p>
<p>The Broader Implications</p>
<p>As the digitally native generation gains market share, lenders are adapting by offering more intuitive online applications and self-service tools for Gen Z. That's a giant step forward for the rest of the generations, too.</p>
<p>However, there's also a growing divide within the generation. While some Gen Zers successfully achieve homeownership, others face being priced out of both buying and renting markets. For this generation, the market is usually complicated and often changing.</p>
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<p>This article originally appeared on GOBankingRates.com: This Generation Is Buying a Shocking Amount of Homes (Hint: It's Not Boomers)</p>
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