Gen Z is proving to be the most financially disciplined generation, with a higher percentage saving substantial portions of their income compared to millennials, Gen X, and boomers. Over half of Gen Z still lives with family, helping them save - in some cases up to 30% or more of their paycheck. Yet despite their savings, homeownership remains largely out of reach.
Low entry-level incomes, averaging $45,000 annually, and rising housing costs make it tough for Gen Z to enter the market. They spend 37% of their income on mortgages in major metros - far more than other generations. Many are turning to more affordable Midwestern cities like Akron, OH, where Gen Z homebuying is on the rise.
Still, just 3% of homebuyers are aged 18–24. With median home prices at $400,500, even a reduced 9% down payment means saving over $36,000. That, plus a tough job market, is delaying homeownership - though shared purchases with friends or parents are becoming more common.
