The momentum that young Americans once had in the housing market is now stalling, with new data from Redfin revealing that homeownership rates among Gen Z have remained flat in recent years. The report found that just over one-quarter (26.1%) of Gen Zers owned their home in 2024, a figure that has barely moved from 2023 and 2022. This marks a notable departure from the trend seen in previous years, as the Gen Z homeownership rate had consistently increased since the cohort first reached homebuying age in 2017.

A similar stagnation is being observed among millennials, with the homeownership rate for this generation holding steady at 54.9% in 2024. Before this, the millennial homeownership rate had steadily grown each year since 2012. In contrast, older generations such as Gen X and baby boomers have continued to see slight increases in their homeownership rates. For example, 72.9% of Gen Xers owned their home in 2024, up from 72% in 2023.

Various factors contribute to the stagnation in homeownership rates among Gen Z and millennials. The report notes that many individuals in these age groups are now in their prime homebuying years but are being priced out of the market due to soaring home prices and mortgage rates. The typical monthly payment for a homebuyer reached an all-time high of $2,800 in 2024, as mortgage rates remained elevated between 6% and 7%.