Despite rising affordability challenges, a majority of young adults still believe homeownership is within reach—though millennials are more confident than Gen Z, according to the latest NextGen Homebuyer Report.
"While 95% of respondents share a desire to achieve homeownership, confidence levels, affordability strategies, and trust in professionals reveal ongoing disparities that demand industry attention," Kristin Messerli, executive director of FirstHome IQ, said in the report.
"Trust in financial institutions and real estate professionals has plummeted, and
The survey of 1,000 individuals between 18 and 44, which was conducted in partnership with National MI and FirstHome IQ, is
Across all respondents, 59% said it is possible they could become a homeowner, but 35% said it was "just a dream."
A higher share of millennials, 61%, believed they could obtain a home, versus 56% of Gen Zers.
A separate survey recently released by Neighborworks America found 48% of current renters not seeing it possible to become a homeowner.
Only 15% said it was very possible and 26% called it somewhat possible.
Neighborworks America found that
There's a racial disparity in the Gen Z cohort, with 66% of Black renters in that age group thinking it very or somewhat possible to become a homeowner, compared to 38% of whites and 54% of Hispanics.
Where they get their information from has undergone some change, the NextGen survey found. Approximately 40% of Gen Z members used social media as part of their research process, while 43% of this cohort was turning to artificial intelligence tools. Nearly two-thirds of all respondents said YouTube played a major role in getting their information.
While 68% of all respondents still turn to friends and family for knowledge about housing, Blacks were less likely than whites to do so, 59% to 71%.
The same dynamic played out in using professionals. The survey found 63% of all NextGen buyers looked to professionals for information, but for Blacks it was just 57% while for whites, it was 66%.
Only 9% of millennials and 5% of Gen Z respondents said they would go to a loan officer first for guidance in buying a home, versus 44% and 38% which would go to a real estate agent.
Neighborworks America suggested renters use a housing counselor as an advisor; the organization has its own network.
"The homebuying process can be dizzying," said Noelle Melton, vice president of homeownership programs at Neighborworks America. "While there's lots of sources of information online and on social media, buying a home is usually the largest investment a person makes in their lifetime and for a decision this significant for their family and their future, working with an expert is the best move."
The Neighborworks America survey was conducted between Feb. 1 and Feb. 5 with a sample of 4,426 adults 18 or older.
