Gen Z trades homeownership for debt repayment as costs rise
Mar 1st 2026
Faced with high mortgage rates, soaring home prices and heavy personal debt, Gen Z is largely delaying or forgoing homeownership and focusing on paying down loans and balances first.
- Gen Z accounts for just 3% of U.S. homebuyers according to the National Association of Realtors.
- A Newsweek poll and related reporting show Gen Z carries roughly $94,000 in personal debt on average, well above millennials and Gen X.
- Mortgage rates near 7% and high down payment expectations make monthly mortgage payments unaffordable for many young buyers.
- The median U.S. home price is over $403,000 while the national average wage index is about $66,600, widening the affordability gap.
- About one third of Gen Z say they are financially underwater because of inflation, high rates, and stagnant wages, according to National Debt Relief and Fortune.
- Many Gen Zers say they are prioritizing paying down student loans, credit card balances, buy-now-pay-later obligations, and medical bills before saving for a home