Redfin Reports Gen Z and Millennial Homeownership Rates Flatlined in 2024 as Housing Costs Soared
Redfin (NASDAQ: RDFN) reports stagnation in young Americans' homeownership rates in 2024. Gen Z homeownership remained flat at 26.1% (vs 26.3% in 2023), while millennial homeownership stalled at 54.9% (vs 54.8% in 2023). This breaks previous years' growth trends for both generations.
In contrast, older generations saw slight increases: Gen X ownership rose to 72.9% from 72%, and Baby Boomers increased to 79.6% from 78.8%. The report highlights a significant generational gap, with only 33% of 27-year-old Gen Zers owning homes compared to 40.5% of Baby Boomers at the same age.
Key factors contributing to this trend include elevated mortgage rates (6-7%), record-high monthly payments (approximately $2,800), housing supply, and wages not keeping pace with housing costs. Additional challenges for young buyers include student loan debt, economic uncertainty, and shifting priorities toward flexibility over homeownership.
Redfin (NASDAQ: RDFN) riporta una stagnazione nei tassi di proprietà abitativa degli americani giovani nel 2024. La proprietà abitativa della Gen Z è rimasta stabile al 26,1% (rispetto al 26,3% nel 2023), mentre la proprietà abitativa dei millennial è rimasta ferma al 54,9% (rispetto al 54,8% nel 2023). Questo interrompe le tendenze di crescita degli anni precedenti per entrambe le generazioni.
Al contrario, le generazioni più anziane hanno visto lievi aumenti: la proprietà della Gen X è aumentata al 72,9% dal 72%, e i Baby Boomers sono aumentati al 79,6% dal 78,8%. Il rapporto evidenzia un significativo divario generazionale, con solo il 33% dei 27enni della Gen Z che possiede case rispetto al 40,5% dei Baby Boomers alla stessa età.
I fattori chiave che contribuiscono a questa tendenza includono tassi di mutuo elevati (6-7%), pagamenti mensili record (circa $2.800), disponibilità di alloggi e salari che non tengono il passo con i costi abitativi. Ulteriori sfide per i giovani acquirenti includono il debito degli studenti, l'incertezza economica e il cambiamento delle priorità verso la flessibilità piuttosto che la proprietà abitativa.
Redfin (NASDAQ: RDFN) informa sobre la estancamiento en las tasas de propiedad de vivienda de los jóvenes estadounidenses en 2024. La propiedad de vivienda de la Gen Z se mantuvo plana en 26.1% (frente al 26.3% en 2023), mientras que la propiedad de vivienda de los millennials se detuvo en 54.9% (frente al 54.8% en 2023). Esto rompe las tendencias de crecimiento de años anteriores para ambas generaciones.
En contraste, las generaciones mayores vieron ligeros aumentos: la propiedad de la Gen X aumentó al 72.9% desde el 72%, y los Baby Boomers aumentaron al 79.6% desde el 78.8%. El informe destaca una significativa brecha generacional, con solo el 33% de los jóvenes de 27 años de la Gen Z que poseen casas en comparación con el 40.5% de los Baby Boomers a la misma edad.
Los factores clave que contribuyen a esta tendencia incluyen tasas hipotecarias elevadas (6-7%), pagos mensuales récord (aproximadamente $2,800), suministro de viviendas y salarios que no se mantienen al ritmo de los costos de vivienda. Desafíos adicionales para los jóvenes compradores incluyen la deuda estudiantil, la incertidumbre económica y el cambio de prioridades hacia la flexibilidad en lugar de la propiedad de vivienda.
레드핀 (NASDAQ: RDFN)은 2024년 미국 젊은이들의 주택 소유율이 정체 상태에 있다고 보고했습니다. Z세대의 주택 소유율은 26.1%로 2023년의 26.3%와 비슷하게 유지되었고, 밀레니얼 세대의 주택 소유율은 54.9%로 2023년의 54.8%와 변화가 없었습니다. 이는 두 세대 모두의 지난 몇 년간 성장 추세를 깨뜨리는 것입니다.
반면에, 나이 많은 세대는 약간의 증가를 보였습니다: X세대의 소유율은 72%에서 72.9%로 증가하였고, 베이비 붐 세대는 78.8%에서 79.6%로 증가했습니다. 이 보고서는 27세의 Z세대 중 단 33%만이 주택을 소유하고 있는 반면, 같은 나이의 베이비 붐 세대는 40.5%가 주택을 소유하고 있다는 중요한 세대 간 격차를 강조합니다.
이러한 추세에 기여하는 주요 요인은 높은 모기지 금리 (6-7%), 기록적인 월세 (약 $2,800), 주택 공급 및 주택 비용에 비해 증가하지 않는 임금입니다. 젊은 구매자에게는 학생 대출 부채, 경제적 불확실성 및 주택 소유보다 유연성을 중시하는 우선순위 변화와 같은 추가적인 도전 과제가 있습니다.
Redfin (NASDAQ: RDFN) rapporte une stagnation des taux de propriété chez les jeunes Américains en 2024. La propriété de la génération Z est restée stable à 26,1% (contre 26,3% en 2023), tandis que la propriété des milléniaux a stagné à 54,9% (contre 54,8% en 2023). Cela rompt les tendances de croissance des années précédentes pour les deux générations.
En revanche, les générations plus âgées ont connu de légers augmentations : la propriété de la génération X est passée de 72% à 72,9%, et les Baby Boomers ont augmenté de 78,8% à 79,6%. Le rapport met en évidence un écart générationnel significatif, avec seulement 33% des jeunes de 27 ans de la génération Z possédant des maisons, contre 40,5% des Baby Boomers au même âge.
Les facteurs clés contribuant à cette tendance incluent des taux hypothécaires élevés (6-7%), des paiements mensuels records (environ 2 800 $), l'offre de logements et des salaires qui ne suivent pas les coûts du logement. D'autres défis pour les jeunes acheteurs incluent la dette étudiante, l'incertitude économique et un changement de priorités vers la flexibilité plutôt que la propriété.
Redfin (NASDAQ: RDFN) berichtet über eine Stagnation der Eigentumsquoten junger Amerikaner im Jahr 2024. Der Eigentum von Gen Z blieb bei 26,1% (gegenüber 26,3% im Jahr 2023) stabil, während der Eigentum von Millennials bei 54,9% stagnierte (gegenüber 54,8% im Jahr 2023). Dies bricht die Wachstumstrends der Vorjahre für beide Generationen.
Im Gegensatz dazu verzeichneten ältere Generationen leichte Anstiege: Der Eigentum von Gen X stieg auf 72,9% von 72%, und die Baby Boomers erhöhten sich auf 79,6% von 78,8%. Der Bericht hebt eine signifikante generationsbedingte Kluft hervor, da nur 33% der 27-jährigen Gen Z Eigentum besitzen, verglichen mit 40,5% der Baby Boomers im gleichen Alter.
Wichtige Faktoren, die zu diesem Trend beitragen, sind hohe Hypothekenzinsen (6-7%), rekordverdächtige monatliche Zahlungen (etwa 2.800 $), das Angebot an Wohnraum und Löhne, die mit den Wohnkosten nicht Schritt halten. Zusätzliche Herausforderungen für junge Käufer sind Studentenschulden, wirtschaftliche Unsicherheit und ein Wandel der Prioritäten hin zu Flexibilität anstelle von Wohneigentum.
- Slight increase in Gen X homeownership to 72.9%
- Baby Boomer homeownership rate growth to 79.6%
- Stagnating Gen Z and millennial homeownership rates indicate market accessibility issues
- Record-high monthly payments of $2,800 limiting buyer affordability
- Housing costs rising faster than wage growth
- Persistent high mortgage rates between 6-7%
- housing supply constraining market growth
Insights
Redfin's research reveals stagnating homeownership rates among Gen Z (26.1%) and Millennials (54.9%) in 2024, breaking previous upward trends. This demographic pattern represents a concerning signal for Redfin's core business model, which depends on transaction volume and first-time homebuyers.
The report highlights a structural affordability crisis with record monthly payments of approximately
This research substantiates the challenges Redfin faces in its primary market segment. The generational homeownership gap—with today's 27-year-olds showing
From a business perspective, these findings explain Redfin's recent struggles to grow transaction volume and market share. The company's revenue streams from brokerage services, mortgage origination, and related services all depend on housing turnover, which is being suppressed by these demographic and economic factors.
The report also reveals how older generations are holding onto properties rather than selling, further constraining already housing supply. This inventory challenge compounds the affordability crisis, creating a self-reinforcing cycle that directly impacts Redfin's growth potential in its core business segments.
The flatlining of Gen Z and Millennial homeownership rates represents a significant structural shift in the housing market with negative implications for Redfin's business model. This isn't merely a cyclical downturn but evidence of a fundamental affordability crisis that's reshaping homebuying patterns.
Most concerning is the breakdown of what had been a reliable demographic trend. Prior to 2022-2024, Millennial homeownership had increased every year since 2012, creating a predictable growth pipeline for brokerages. The interruption of this pattern suggests we've hit an affordability ceiling that traditional market dynamics haven't been able to overcome.
The intergenerational comparison is particularly telling—only
For Redfin specifically, this research highlights challenges with their target demographic. As a tech-forward brokerage that has invested heavily in digital tools and services aimed at first-time homebuyers, the company now faces headwinds in converting these potential customers when affordability constraints remain this severe.
The comments from Redfin's Chief Economist about cultural shifts in homeownership priorities also suggest longer-term implications beyond the current rate environment. Even as rates eventually moderate, the delayed household formation and shifting attitudes toward homeownership could permanently alter traditional housing markets dynamics that companies like Redfin were built upon.
Young Americans are also tracking behind their parents' generations; for instance,
The story is similar for millennials:
Older Americans saw their homeownership rates increase slightly in 2024:
The homeownership rate for millennials and older Gen Zers might be expected to continue increasing because they’re in prime homebuying age, and many are getting married, starting families and settling into their careers. But many people in those generations have been unable to buy homes because sale prices and mortgage rates have soared over the last few years.
Mortgage rates started rising rapidly in 2022 after several years of record lows: Weekly average rates went from around
And even though average wages have increased in recent years, too, they haven’t risen as fast as housing costs, pricing many people out of homeownership. High housing costs are a bigger obstacle for young people than older people because they’re less likely to already own a home, meaning they can’t use equity to purchase their next house.
There are also a few other reasons for the stagnation in homeownership rates for young people:
- Housing supply is tight, partly because older Americans are hanging onto their homes rather than selling. That means younger people have fewer homes to choose from, especially desirable homes in popular neighborhoods.
- Many people opt to remain renters because while the cost of buying a home is rising, the cost of renting is essentially flat.
- Gen Zers and millennials are navigating economic uncertainty, including a potential economic slowdown and concerns about things like tariffs, the high cost of living and lack of job security. Many young people also have student loan debt.
- Some Gen Zers and millennials are prioritizing flexibility over homeownership in the aftermath of the pandemic, which increased the prevalence of remote work. Some are choosing to rent on a short-term basis, travel, or live with family.
“Homeownership is still a symbol of success and stability for many Americans, but the nation’s culture is shifting with the economic times,” said Redfin Chief Economist Daryl Fairweather.
“Some young people are placing less emphasis on owning their own home because they’re prioritizing flexibility, while others continue renting because they can’t afford to buy. Buying a home is still typically a good financial investment, but for young people who don’t have the desire or means to do so, there are other viable investments that, unlike buying a home, don’t require a huge down payment. Those people might consider investing in the stock market, their own business, or education.”
Redfin also examined homeownership data over time, which reveals that it was more common for young people to own homes in the past.
Take 27-year-olds as an example:
Moving on to a millennial example,
The comparatively low share of young homeowners today stems mostly from the same factors noted above, namely lack of affordability. But it’s also because young adults are reaching milestones later in life than they used to. For instance, the average first-time mother in the
To view the full report, including charts and a detailed methodology, please visit: https://www.redfin.com/news/homeownership-rate-by-generation-2024
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than
Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250324320324/en/
Contact Redfin
Redfin Journalist Services:
Angela Cherry
press@redfin.com
Source: Redfin
FAQ
What is the current Gen Z homeownership rate in 2024 according to Redfin (RDFN)?
How do current mortgage payments compare to historical levels for RDFN buyers?
What is the homeownership gap between Gen Z and Baby Boomers at age 27?
What is the current millennial homeownership rate in 2024 according to RDFN data?
What are the current mortgage rates affecting RDFN buyers in 2024?
