1 in 5 Gen Z Think WWIII Is More Likely Than Owning a Home 

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Although 90% of Gen Z want to become homeowners someday, 79% believe they’re priced out of the market, according to a new survey from Clever Offers. 

The survey uncovered an alarming level of financial instability among Gen Z that hinders their ability to buy homes. About 46% of Zoomers said they’re already struggling to pay rent, and just under a third said their living situation is so precarious that they’ve considered living in their car. 

Those circumstances, coupled with a stubbornly expensive market, have led to widespread pessimism among the younger generation. Two-thirds of Zoomers said they feel more worried about their housing security than they did a year ago, and 82% worry the market will get worse before they’re able to buy a home. 

What’s more, over 1 in 5 Zoomers said the start of World War III seems more likely than owning a home in the next five years. 

Clinging to the American Dream 

Gen Z has a reputation for being unconventional, but an overwhelming majority aspire to own a home. Ninety percent of Zoomers said they wanted to buy a house, but 62% worry they never will. Of those who think they’ll never own a home, 82% say it’s because they won’t be able to afford it. That’s a sharp increase from 2024, when only 57% of respondents said the same. 

To some extent, their pessimism is justified. Home prices and mortgage rates have remained elevated despite efforts to cool down the market. Wages have stagnated, and inflation has persisted. Yet to many zoomers, the market may feel worse than it is. 

About 11% of Zoomers say getting struck by lightning, a 1 in 15,300 chance, feels more likely than owning a home in the next five years. Meanwhile, 17% say the same about winning the lottery — a 1 in 300 million chance. 

Aiming Low 

Nearly every Zoomer said they face barriers to homeownership. The most-cited barrier was high prices, with 47% of Gen Z saying they impeded their ability to buy homes. About 28% said interest rates were too high, and another 28% said they found it too difficult to save for a down payment. 

This was a common sticking point among Gen Z. Roughly 75% said the rising living costs have made it impossible to save money for a down payment. Almost half of Zoomers said they planned to put down less than 20% on a future home purchase, while 22% said they’d have to put down less than 10%. 

Facing economic headwinds, many prospective Gen Z homebuyers have adjusted their expectations downward. Sixty percent of Gen Z said they’d make an offer on a fixer-upper that needs significant repairs. Fifty-eight percent would buy a home with no central heat or air conditioning, 47% would buy a home with asbestos, 46% would buy a home with foundation issues, and 46% would buy a house with a leaky roof. 

Affordable Homes Still Out of Reach 

Fifty-five percent of Gen Z said they want to purchase a home that costs less than $300,000, while 28% aim to buy a home that costs less than $150,000 — far below the median U.S. home price of $416,900. 

Even at that more affordable price point, homeownership may still be out of reach for many Zoomers. Seventy-nine percent couldn’t afford a 10% down payment on a $300,000 house, and 67% couldn’t afford a 10% down payment on a $150,000 home. What’s more, over a quarter of Zoomers said their current finances prevent them from putting any money toward a down payment. 

As a consequence, many zoomers assume they’ll be forced to delay becoming a first-time homebuyer until they’re older. More than half of Gen Z said they’ll be at least 30 or older when they buy their first home, a significant increase from 2024, when only 39% of Zoomers said the same. 

Facing steep barriers to homeownership, many zoomers wonder if they’ll have to opt out of homeownership. Sixty-six percent said the housing market is rigged against them, and 72% believe they’ll be forced to rent forever. 

Forty-one percent said they’d rather avoid home-buying altogether and live rent-free with their parents forever.