97% of Millennial Home Buyers Say Financial Barriers Are Holding Them Back From Homeownership in 2026 

Although 40% of millennial home buyers say they’re desperate to buy a home in 2026, nearly all (97%) report facing at least one barrier to homeownership, according to a new report from Clever Offers, a platform owned by Clever Real Estate that allows home sellers on tight timelines to explore their selling options. 

Financial hurdles top millennials’ home-buying challenges, with the most common barriers being expensive homes (46%), high interest rates (40%), difficulty saving for a down payment (34%), and high property taxes (30%). 

Although the median U.S. home costs $410,800, 59% of millennials plan to spend less than $400,000 on their home purchase, including 67% of first-time buyers. 

More than three-fourths of millennials (78%) say potential interest rate drops in 2026 would entice them to buy, but 51% would only consider purchasing if rates fall below the current level of about 6%. 

Conversely, nearly half of millennials (49%) would consider accepting an interest rate above 6%, while 44% say they’d be willing to spend more than half of their monthly income on housing to afford a home. 

Although more than a third of millennials (34%) say homeownership would be more affordable with their own better spending habits, most say they aren’t willing to cut back on gym memberships (77%), subscription services (71%), or coffee (67%). 

Based on their current savings, just 28% of millennials could afford a 20% down payment on a median-priced home, and fewer than half (45%) have enough for a 10% down payment. 

Compounding those challenges, 1 in 4 millennials (24%) carry more debt than savings. 

Three in four millennials (72%) say homeownership is still part of the American dream, but 41% think they’ll be the last generation in their family able to afford one.