Homeownership is slipping further from reach for younger Americans, and a combination of elevated mortgage rates, scarce inventory, and economic uncertainty is making the climb steeper.

Just 38.3% of 28-year-old Gen Zers owned their home in 2025, according to a Redfin analysis of census data. That compares with 42.5% of Gen Xers and 44.4% of baby boomers at the same age.

Affordability Gap Widens

A White House Council of Economic Advisers report found homeownership rates fell for every five-year age group between 21 and 70 from 2000 to 2023. The steepest drops hit the 31-35 and 36-40 cohorts, each declining more than five percentage points.

Redfin chief economist Daryl Fairweather told The Hill last Wednesday that young adults are “just having trouble affording housing in general,” adding that homeownership feels “unachievable” for many of them.

The median age of a first-time homebuyer stood at 35 in 2025, up from 31 in 2008.

Rates And Inventory Squeeze Buyers

The 30-year fixed mortgage averaged 6.37% as of early April, according to Freddie Mac (OTC:FMCC). The National Association of Realtors reported existing home sales fell 3.6% in March to an annualized pace of 3.98 million units, the slowest in nine months. The national median sales price hit a record $408,800 for March.

NAR chief economist Lawrence Yun said lower consumer confidence and softer job growth continue to hold back buyers, while limited inventory keeps prices elevated.

Congress Seeks Supply Fix

The Senate passed the bipartisan 21st Century ROAD to Housing Act 89-to-10, co-sponsored by Sen. Tim Scott (R-S.C.) and Elizabeth Warren (D-Mass.). The bill would streamline permitting and fund home repair grants. The White House has signaled that President Trump would sign it.

The House, which passed its own version earlier, is now awaiting a floor vote on the Senate-amended bill. A House Financial Services Committee spokesperson said reaching the president’s desk “remains a priority.”

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.

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