Millennial Home-Buying and Homeownership Statistics
KEY POINTS
- Millennial homeownership milestone: Over 50% of millennials now own homes, but they reached this milestone later than previous generations.
- Rising homeownership costs: Record-high home prices and elevated mortgage rates challenge millennials' ability to buy homes.
- Savings hurdles: 67% of millennials have not started saving for a home down payment, highlighting financial obstacles.
Millennials have burst onto the housing scene over the last decade. Over 50% of millennials are now homeowners. But that milestone took longer to reach for millennials than generations before them, and for just the second time since 2014, millennials do not make up the largest share of home buyers.
Motley Fool Money's Millennial Homeownership Trends Report reveals how and why millennials are still struggling to become homeowners by analyzing the latest data on millennial home-buying.
Home prices near record highs, elevated mortgage rates, and economic challenges have placed millennial home buyers in a uniquely difficult position. A significant percentage of millennials who are not homeowners are pessimistic that they will ever be able to buy a home, though comparing the best mortgage lenders can help some overcome today's affordability hurdles.
55% of millennials are now homeowners
Fifty-five percent of millennials are now homeowners, but it took longer for millennials to hit the 50% homeownership milestone than previous generations.
| Generation | Percent That Are Homeowners, 2024 |
|---|---|
| Gen Z | 26% |
| Millennial | 55% |
| Gen X | 73% |
| Baby boomer | 80% |
One way of measuring the pace of homeownership for each generation is by looking at the percentage of each generation that were homeowners at 30 years of age.
Just 33% of millennials at age 30 were homeowners, compared to 42% of Gen X and 48% of baby boomers when they were the same age, according to Census Bureau data compiled by Apartment List.
| Generation | Homeownership at Age 30 |
|---|---|
| Millennials | 33% |
| Gen X | 42% |
| Baby boomers | 48% |
| Silent | 55% |
Millennials are the second-largest group of home buyers
Millennials accounted for 29% of home buyers in 2024, making them the second-largest home-buying generation in the market behind baby boomers. That's down from 38% in 2023, according to data from the National Realtors Association.
Older millennials were responsible for 17% of home purchases in 2024 while younger millennials were responsible for 12%, suggesting that there's still plenty of room for additional home buying from millennials as many in the generation reach the traditional peak home-buying years of their mid-30s.
Baby boomers have long dominated the housing market and still played the leading role in 2024, accounting for 42% of home buyers.
Twenty-four percent of home buyers in 2024 were from Gen X. Sandwiched between millennials and baby boomers, Gen Xers still play an important role in the housing market. They are in their peak earning years, have the highest median income of any generation, and have more kids at home than other generations.
Percent of home buyers by generation
| Generation | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Gen Z | 3% | 3% | 4% | 2% | 2% |
| Millennials | 29% | 38% | 28% | 43% | 37% |
| Gen X | 24% | 24% | 24% | 22% | 24% |
| Baby boomers | 42% | 31% | 39% | 29% | 32% |
| Silent | 4% | 4% | 4% | 4% | 5% |
Nearly half of older millennials are buying homes worth $300,000 or more, catching up to older generations
Older millennials are spending close to what Gen Xers are on a house, and more than baby boomers.
Forty-two percent of home buyers aged 32 to 41 purchased a home worth $350,000 or more in 2021, and the median home purchase price for that cohort was $315,000.
That data is the most recent supplied by the National Association of Realtors, broken down by generation, and likely represents home values below what they currently are. The median home sales price has steadily increased since 2021.
Older millennials purchasing homes priced at what older generations can afford shows that they are a driving force in the housing market, despite the challenges they face.
Younger millennials, meanwhile, are the most frugal group. In fact, 73% purchased homes for under $350,000 and their median home purchase price was $250,000. Many in that group are just starting their careers and not making close to the upper limit of their potential salary, so it's not surprising they are spending $65,000 less on a home than their older millennial counterparts.
| Home Price | All Buyers | 23 to 31 | 32 to 41 | 42 to 56 | 57 to 66 | 67 to 75 | 76 to 96 |
|---|---|---|---|---|---|---|---|
| <$75,000 to $174,999 | 16% | 26% | 16% | 16% | 19% | 16% | 21% |
| $175,000 to $349,999 | 42% | 47% | 41% | 40% | 41% | 46% | 47% |
| $350,000 to $499,999 | 22% | 18% | 23% | 22% | 21% | 21% | 21% |
| >$500,000 | 20% | 10% | 19% | 22% | 18% | 18% | 13% |
| Median price | $305,000 | $250,000 | $315,000 | $320,000 | $301,000 | $295,000 | $296,000 |
Why millennials are buying homes now
Around 40% of millennials didn't cite a specific reason for the timing of their home purchase, instead just saying it was "just the right time" and that they were "ready to buy a home."
The least-selected reasons among millennial home buyers for making their purchase reveal that difficulties in the housing market still persist:
- Five percent of younger millennials and 3% of older millennials said it was the best time to buy because of the affordability of homes.
- Just 4% of young millennials, 2% of old millennials, and 2% of all buyers, said they purchased a home because it was the best time due to mortgage financing options, a reflection of relatively high mortgage rates.
- Only 10% of younger millennials and 11% of older millennial home buyers said they purchased a home because it was the best time to do so given the availability of homes on the market.
| Reason for Purchase | All Buyers | 18–25 | 26–34 | 35–44 | 45–59 | 60–69 | 70–78 | 79–99 |
|---|---|---|---|---|---|---|---|---|
| It was just the right time, was ready to buy a home | 43% | 46% | 44% | 41% | 41% | 47% | 44% | 45% |
| Did not have much choice, had to purchase | 23% | 13% | 28% | 30% | 26% | 17% | 16% | 15% |
| It was the best time because of availability of homes for sale | 13% | 28% | 10% | 11% | 11% | 14% | 15% | 13% |
| It was the best time because of affordability of homes | 4% | 6% | 5% | 3% | 3% | 3% | 4% | 4% |
| The buyer wished they had waited | 4% | 4% | 3% | 5% | 5% | 3% | 4% | 3% |
| It was the best time because of mortgage financing options | 2% | 3% | 4% | 2% | 2% | 1% | 2% | <1% |
| Other | 12% | 1% | 7% | 8% | 13% | 15% | 16% | 19% |
Nearly 25% of millennials expect to always rent a home, up from 13% in 2018
Overall, millennials are more pessimistic about their prospects for owning a home than in previous years -- nearly 25% of millennials in 2022 said they expect to always rent, up from 21% in 2021 and 2020, 15% in 2019, and 13% in 2018.
| Year | Annual share of millennial renters who plan to "always rent" instead of buy |
|---|---|
| 2018 | 13.30% |
| 2019 | 14.90% |
| 2020 | 21.30% |
| 2021 | 21.60% |
| 2022 | 24.70% |
Finances were the primary concern of those that said they expect to always rent. That's not surprising, given that housing prices have been at record levels and mortgage rates have increased.
| Why do you always expect to rent? | 2018 | 2022 |
|---|---|---|
| Can't afford to buy a home | 69% | 74% |
| Like the flexibility renting provides | 42% | 27% |
| Prefer to avoid home maintenance and other costs | 36% | 26% |
| Buying a home is financially risky | 29% | 19% |
A whopping 74% cited the inability to afford a home, 26% said they wanted to avoid maintenance and other costs that come with owning a home, and 19% said that buying a home is a financial risk. Just 27% said they like the flexibility of renting.
Data collected by the Federal Reserve in 2024 also shows that the cost of home ownership is the main obstacle for many millennials currently renting:
- 68% of millennials said they currently rent because they can't afford a down payment to buy.
- 48% said they can't afford a monthly mortgage payment.
- 41% said they can't qualify for a mortgage.
- 37% of millennials are trying to buy.
- Just 30% said they prefer to rent.
| Reasons for renting a home rather than owning | Gen Z | Millennials | Gen X | Baby Boomers | Grand Total |
|---|---|---|---|---|---|
| Can't afford down payment to buy | 73% | 68% | 69% | 58% | 68% |
| Renting is more convenient or flexible | 61% | 54% | 57% | 70% | 58% |
| Can't afford mortgage monthly payment | 53% | 48% | 50% | 48% | 49% |
| Renting is cheaper | 48% | 44% | 43% | 52% | 46% |
| Renting is less financially risky | 46% | 44% | 50% | 53% | 47% |
| Can't qualify for home mortgage | 43% | 41% | 46% | 40% | 42% |
| Trying to buy | 34% | 37% | 25% | 12% | 30% |
| Prefer to rent | 35% | 30% | 41% | 68% | 39% |
Saving for a down payment was the most difficult part of the home-buying process for 33% of young millennial home buyers
Thirty-three percent of young millennial home buyers said that saving for a down payment was the hardest part of the home-buying process, as did 20% of older millennial home buyers, per the National Association of Realtors.
Those percentages are down 5% for young millennial home buyers and 4% for older millennial home buyers compared to the previous year.
Young millennials were more likely to struggle with a down payment than any other age group, a reflection of high home prices and not being in their peak earning years.
Putting together a down payment on a home is typically a multi-year exercise in disciplined saving -- not an easy feat in usual times, and made tougher by the stretch of high inflation after the COVID-19 pandemic and a housing market that hasn't meaningfully cooled off.
| All Buyers | 26–34 | 35–44 | 45–59 | 60–69 | 70–78 | 79–99 | |
|---|---|---|---|---|---|---|---|
| Saving for a down payment was most difficult task in buying process | 12% | 33% | 20% | 11% | 4% | 1% | 2% |
The most difficult part of the home-buying process across all ages is finding the right property. Fifty-five percent of all Americans and around 60% of millennials said locating their dream home was their biggest home-buying challenge.
Paperwork and understanding the home-buying process were more common challenges among younger home buyers. Older Americans were more likely to say that there were no difficult steps in their home-buying process.
67% of millennials have no savings for a home down payment
Despite millennials accounting for 29% home buyers, 67% of the generation have not begun to save for a home down payment, according to Apartment List.
While a down payment isn't necessary to buy a home, it does come with important benefits. A larger down payment increases the chances a mortgage lender offers a better rate. Making a down payment of at least 20% is usually required to avoid mortgage insurance, a cost that's tacked onto mortgages and insures lenders against the borrower defaulting.
Saving for a down payment can seem like a monumental task, but it's never too late to start. Figuring out how much you need to save, where to put your savings, and establishing a timeline can form the foundation of a budget that will make the home-buying journey manageable.
| Among millennials, how much money have you saved for a down payment? | Percent of Millennials |
|---|---|
| $0 | 67% |
| <$10,000 | 15% |
| >$10,000 | 18% |
Older millennials put 14% down on average when buying a home
Older millennial home buyers -- those between 35 and 44 years old -- made an average down payment of 14% in 2023. Younger millennials put down 10% -- the lowest of any age group.
| Age Group | Median Down Payment |
|---|---|
| All home buyers | 15% |
| Home buyers age 26 to 34 | 10% |
| Home buyers age 35 to 44 | 14% |
| Home buyers age 45 to 59 | 17% |
| Home buyers age 60 to 69 | 28% |
| Home buyers age 70 to 78 | 36% |
| Home buyers age 79 to 99 | 38% |
Millennials are making a smaller down payment than the overall median for first-time home buyers, 15%.
Only Americans over 60 years old are making a median down payment of over 20%.
Despite challenges, millennial home buyers have arrived
Millennials have overcome significant challenges to become a major player in the housing market, but they aren't out of the woods yet.
Even after the economic fallout of the COVID-19 pandemic, many millennials are still working toward overcoming barriers to homeownership, such as stubbornly high housing prices and elevated mortgage rates. Plus, millennials are behind the pace of older generations for homeownership and are making below-average down payments.
But there is no question that millennials have arrived as a significant force in the housing market. And as more of the generation explores home buying and becomes homeowners, they have the potential to not only drive the market but reshape the home-buying process.
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Sources
- Apartment List (2023). "Apartment List's 2023 Millennial Homeownership Report."
- Apartment List (2025). "Apartment List's 2025 Millennial Homeownership Report."
- Federal Reserve (2025). "Economic Well-Being of U.S. Households (SHED)."
- National Association of Realtors, (2025). "NAR Home Buyer and Seller Generational Trends."
- Redfin (2025). "Gen Z and Millennial Homeownership Rates Flatlined in 2024 As Housing Costs Soared."
Our Research Expert
Jack Caporal is the Research Director for The Motley Fool and Motley Fool Money.
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