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6 smart ways Gen Z is defying the odds and becoming homeowners in 2025

Shaky employment rates, affordability issues, high interest rates — despite these headwinds, Gen Z is quietly rewriting the narrative around homeownership.

Born between the mid-1990s and early 2010s, the eldest Gen Zers are now in their mid-to-late 20s — and many are already homeowners. In fact, the homeownership rate for adult Gen Zers is when each generation was in their 20s.

parent company Zonda’s analysis of U.S. Census data shows that over 22% of "cuspers" (ages 23–28) already own a home — a higher share than many assume for this generation. Additionally, our data shows that half of Gen Z respondents hope to buy a home in the next five years.

So how are they becoming homeowners in the prime of their youth? Thanks to a handful of creative financing strategies and a fresh definition of what the perfect home looks like, here’s how they’re making big moves in the housing market.

1. They’re Up to Speed on Home Financing Incentives

As digital-first natives, Gen Z has done its homework. The NAR notes this demographic is making use of:

• , which require down payments as low as 3.5% and allow for lower credit scores
• that provide free cash for down payments and closing costs
• Mortgage Credit Certificates (MCCs), which are federal income tax credits for the life of the loan, to help low-to-moderate income borrowers afford their housing payments

For Gen Z, who may be dealing with student loans or entering the workforce during high interest rates, these programs make all the difference between renting and owning.

2. They’re Taking Advantage of Builder Incentives

Beyond federal, state and local incentives, Gen Z homebuyers are going straight to the source for discounts on their property purchase: homebuilders.

It’s a savvy move all homebuyers should consider with that include:

• Working with preferred lenders to secure lower down payments and discounted interest rates
• Rate locks and to secure a low interest rate while the home is being built
• Further help with closing costs and free or discounted upgrades

They’re also willing to shop around and go with the best deal. Researchers that 45% of first-time home buyers who shop multiple lenders got a better rate, which can save you thousands of dollars over the years.

3. They’re Tapping Their Community

Yes, that includes the Bank of Mom and Dad. More than one-third of Gen Zers are receiving a cash gift from family members to help fund their down payment, the NAR reports. About 16% intend to use inheritance money for their down payment.

They’re also teaming up with family and friends to get on the property ladder. Some are moving back in with their parents to save up for a down payment or arranging loans with family members, while others are as a first step to build some home equity.

4. They Opt for New Builds that Save them Money

Gen Z is the most sustainability-minded generation yet. Energy-efficient appliances, smart thermostats, and high-performance windows not only appeal to their values, but also their wallets.

Lower energy costs to the tune of and reduced maintenance costs make new construction homes especially attractive compared to older resale homes for Gen Z buyers.

These new homes are fitted with and can use anywhere from 10-50% less energy per year compared to their counterparts.

5. They’re Buying in the Nation’s Most Affordable Areas

Gen Z buyers don’t need to be in the thick of it in the nation’s most expensive cities. They’re prioritizing value and affordability, in . Zonda data shows that in several affordable markets — including Port St. Lucie, Lakeland, Myrtle Beach, and Naples — more than a third of cuspers already own homes, despite higher ownership premiums. Gen Z buyers are also looking at:

• Lincoln, NE with a 27.7% share of Gen Z buyers, a median household income of $41,930, and a median property value of $199,030
• Tuscaloosa, AL with a 20.9% share of Gen Z buyers, a median household income of $82,535, and a median property value of $298,960
• Eugene-Springfield, OR with a 16.3% share, a median household income of $74,170, and a median property value of $382,290
• Toledo, OH with a 4.2% share of Gen Z buyers, a median household income of $33,730, and a median property value of $114,950
• South Bend-Mishawaka, IN-MI with a 13.9% share, a median household income of $36,705, and a median property value of $212,465

6. They’re Playing the Long Game

Gen Z is not the type to keep up with the Joneses. In fact, market researchers this generation prioritizes experiences, values and authenticity over possessions and income.

This seeps into their homebuying choices, too. They’re driving the demand for so-called starter homes — new homes that are smaller than the typical size, yet with flexible spaces and chock full of to protect their big-ticket purchase.

Builders are adjusting in response. The average new home size is 2,150 sq. ft. — the smallest in 15 years.

And once they’ve closed, they’re staying put. This is a generation that has adopted a “one-and-done” mindset, instead of trading up every few years. Now, buyers under the age of 44 plan to stay in their homes for 16 years or more, with nearly half of buyers aged 18 to 24 saying the same, the reports.

In the long haul, these are massive savings on upkeep, utility bills, repairs, property taxes and closing costs – all of which can go towards paying down the mortgage.

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