Gen Z and Millennials face a tough market, but smart moves can open doors.
For Gen Z and Millennials, buying a home often feels like winning the lottery rather than a regular part of adulthood. Many young adults cannot afford homeownership due to rising prices, stagnant wages, and a competitive market.
According to IPX 1031, 63 percent of Americans can’t afford to buy a home this year, including 87 percent of Gen Z and 62 percent of Millennials.
Despite the grim headlines, you will be better prepared to handle the storm if you understand its cause and what you can do.
Why the Housing Crisis Exists
Housing affordability issues aren’t new. However, it has intensified dramatically in the last decade. As a result of multiple factors, the modern real estate landscape has become one of the most challenging in history.
Housing Prices Have Outpaced Wages
Median U.S. home prices jumped
423 percent between 1985 and 2022, but household income grew only 216 percent. Basically, home values have risen twice as fast as paychecks.
