The State of Homeownership: Trends Among Younger Generations and Beyond

The American dream of homeownership is becoming increasingly out of reach for many young people in today’s current housing market. According to research from the Berkley Institute for Young Americans, individuals under the age of 44 are purchasing homes at a much slower rate than older generations did at the same age.

While reports show that renting is often more affordable than buying in most of the largest metro areas, some Americans are still taking the leap into homeownership. A recent report from RentCafe found that Millennials, born between 1981 and 1996, make up a larger share of homeowner households compared to renter households.

Millennials are spreading out across the United States, with a strong presence in the South. Cities like Killeen and Austin, Texas, as well as Clarksville, Tennessee, have a high percentage of homeowners aged 25-44. Temple, Texas, saw a 75% increase in homeowners in this age group over the past decade, with other Texas cities like Odessa, College Station, and Midland also experiencing significant growth.

Gen Z homeowners, representing about 4% of homeowners nationally, have also made their mark in cities like Provo, Utah, where individuals under 25 make up nearly 40% of homeowners. College towns like Davis, California, Provo, Utah, and Gainesville, Florida, are among the top five cities for young homeowners.

For Generation X and Baby Boomers, California is home to the top five cities with the highest rate of homeownership. Cities like Palmdale, California, have almost half of homeowners aged 45-64. Boca Raton, Florida, St. George, Utah, and Scottsdale, Arizona, are popular cities for homeowners aged 65 and older.

In terms of affordability, certain counties in the U.S. have the highest and lowest median home values. Counties in California like Santa Clara and San Mateo top the list for the most expensive housing markets, while counties in South Dakota and Texas have some of the lowest median home values.

Overall, the housing market continues to evolve, with different generations making their mark in various cities across the country, each facing their own unique challenges and opportunities in the pursuit of homeownership.