For many, the dream of homeownership has always been tied to milestones like marriage and children.
But Gen Z is beginning to upend that narrative through a broader trend of no longer waiting for life’s big events to buy property. They’re adapting to affordability challenges in ways that set them apart from the Millennials who bought before them.
In fact, Gen Z now accounts for just 3% of all homebuyers, according to the National Association of Realtors (NAR). (1) However, they’re making their presence felt in creative and deliberate ways.
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Learning from Millennial mistakes
One of the most glaring errors young investors made was treating viral "hot tips" as investment strategy — jumping onto meme stocks, speculative crypto or “the next big thing" hype. Today, Gen Z is more cautious of flashy financial advice on social media, since much of it doesn’t reflect real fundamentals or risks.
Gen Z is also more disciplined in saying no when home pricing or financing doesn’t make sense. For example, one report finds that 58% of Gen Z buyers who started a house search backed out due to unfavorable market conditions, showing they’re less willing to overcommit. (2)
On the other hand, buyers in the past, including older cohorts during housing booms, have felt pressured to buy or got swept up in market momentum, leading to rushed purchases and later regret
Finally, Millennials typically entered the housing market later, relying on two incomes and sometimes underestimating the risks of job loss or rising costs. Gen Z, by contrast, is more cautious about affordability and independence.
This is reflected in the fact that single homebuyers are driving much of this cohort’s activity. According to NAR, 30% of Gen Z homebuyers ages 18 to 25 are single women (3) — a higher share than any other age group. Instead of assuming a partner’s income will always factor in, younger buyers are acting solo to help reduce vulnerability if one income disappears.
Gen Z’s avoidance of these pitfalls gives them a better chance of lasting financial stability rather than short-term gains followed by collapse.
Read more: How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
Beyond side hustles: Making it work
While side hustles do play a role, Gen Z is also reshaping the idea of traditional work. Some combine freelance gigs with full-time jobs, while others lean into flexible industries.
Still, sacrifices remain part of the equation:
About 42% of 18 to 30 year olds lived with at least one parent. (4) Surveys show that saving money is the top reason young adults cite for living with family. At the same time, most Gen Z renters share housing (less than 4% rent solo), indicating many cohabitate specifically to cut costs. (5)
Lessons for all generations
Older buyers may recognize familiar struggles in today’s market, but Gen Z offers lessons worth adopting.
Buying solo can sometimes provide a safeguard against economic uncertainty rather than a risk. In addition, following sound financial advice, living below your means, saving aggressively whenever possible and not waiting for "perfect timing" are all strategies that can help buyers across generations.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
National Association of Realtors (1), (3); Empire Learning (2); Business Insider (4); RentCafe (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.