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he American Dream of owning a home remains, but the route has shifted dramatically. A Coldwell Banker study released to Fortune revealed that 84 % of Gen Z postpone major life events—marriage, children, career changes, pets—to save for a house. A Harris Poll of over 3,000 U.S. adults, conducted for Coldwell Banker, found that 97 % of Gen Z and 93 % of millennials intend to buy a home someday, yet rising prices, mortgage rates, and other costs make that goal harder to reach.
Jason Waugh, president of Coldwell Banker Affiliates, told Fortune that there is no single solution to affordability. “We need lower mortgage rates, more inventory, and slower price growth,” he said. He added that state and local down‑payment assistance and tax incentives can ease the burden for first‑time buyers, many of whom are unaware of available programs.
Recent data underscores the difficulty for younger buyers. In 2025, first‑time home‑buyer share fell to a record low of 21 %, while the average age of first buyers rose to 40, according to the National Association of Realtors (NAR). “The low share of first‑time buyers reflects a market starved for affordable inventory,” said NAR deputy chief economist Jessica Lautz. “Since 2007, the share has contracted by 50 %.” The Coldwell Banker report also shows that 53 % of aspiring first‑time homeowners expect to purchase only after age 40, potentially delaying family milestones even further.
The affordability crisis is stark. Mortgage rates now hover above 6 %, a sharp rise from the sub‑3 % rates of the pandemic. Home prices have surged roughly 50 % over the past five years, per the Case‑Shiller U.S. National Home Price Index. To afford a median‑priced home, a household must earn about $141,000, double the average U.S. salary, according to the National Association of Home Builders. Realtor.com chief economist Danielle Hale noted that the income required to buy a home remains significantly higher than pre‑COVID levels, highlighting ongoing affordability challenges.
Despite these hurdles, Gen Z is adapting. Many take side hustles for extra income, consider smaller or fixer‑upper properties, and move to more affordable regions. Some co‑buy with family or friends, or live with parents to save. Waugh cited a 20‑year‑old client who skipped college, started working at 17, and saved for three years while living with his parents to buy his own house. This willingness to embrace multigenerational living and creative financing shows that the American Dream is being reshaped by Gen Z to fit today’s economic realities.
