Is owning a home becoming impossible? Not entirely, but data from the National Association of Realtors (NAR) revealed that the median age of the average first-time homebuyer in the United States last year soared to 40 years old, from 38 in 2024, 36 in 2022, 33 in 2020, and 28 in 1991 — a kind of a “shocking number” and “steep climb” according to NAR deputy chief economist and vice president of research, Jessica Lautz.
The disappointment and frustration this brings, Fortune reported, citing a paper by Northwestern University and University of Chicago researchers, is the reason why they’re spending more than saving, working less, and making risky investments. In short, they are basically “giving up.”
A 2024 Harris Poll survey, cited by researchers Younggeun Yoo and Seung Hyeong Lee, found that 42% of Americans and 46% of Gen Z believe that no matter how hard they work, they will “never be able to afford a home” they really love.
In fact, the survey also found that young people have crossed a “threshold” where many are beginning to give up on homeownership altogether.
A trend noticed by researchers was that when home prices rise beyond what renters can realistically save for, many give up on buying a home and instead “doomspend”, indulge in unnecessary spending. On top of that, a Bankrate survey found that 32% of Gen Z carry more debt than savings.
Gen Z’s lack of effort in the workplace, researchers said, may also be rooted in the thinking that their effort isn’t worth it if they can’t afford their long-term financial goals. Meanwhile, some have turned to risky investments, like buying cryptocurrencies, perhaps in hopes of higher returns, as they think they have less to lose.
One Gen Z online said, “Owning a home for me has now become a myth,” while another, seemingly defiant, said, “The best part of this kind of low consumption lifestyle is how it is going to completely wreck the real estate market.”
A third added, “With inflation ramping up, everyone who is asset poor will have no choice but to do exactly the same. When there is an expiration date on money, and it’s devaluing fast to the point where it’s worth less the longer it’s in your hand, you can’t hold it, you have to spend it immediately. This is all going to happen much quicker than people realise with the way the dollar is going at the moment.”
However, pushback against Gen Z behaviour also surfaced online, with one person saying, “They aren’t even trying at this point,” to which someone else, perhaps a Gen Z, responded: “If nothing meaningful can be achieved, what’s the point of continuing to pursue that path?” /TISG
