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Demographics

3 Myths Holding Millennials and Gen Z Back From Becoming Homeowners

Purchasing a home has become more challenging in the past few years, but these myths could be stopping younger generations from entering the housing market altogether

August 16, 2024

Younger generations grew up in a challenging housing market, but there are still ways for them to purchase homes.

Image: fizkes / stock.adobe.com

Despite young people frequently thinking about homeownership, misconceptions about the housing market might be holding them back. According to housing market platform Realtor.com, 40% of Generation Z and Millennials think about buying a home at least once a week, but many feel discouraged by today's economic challenges. Additionally, more than half (56%) believe they're in a worse position to buy compared to previous generations. However, much of this skepticism stems from myths, such as the belief that high credit scores or large down payments are essential to buying a home.

Ralph DiBugnara, president of Home Qualified, believes that growing up during the 2008 financial crisis scarred Gen Z and millennials.

“They came of age when there was a housing crash. But that was a completely different market that was overbuilt and overleveraged,” he says.

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