Over the last ten years, Millennials and Gen Z have begun to find their places in the housing market, but their experiences haven’t been the same. So how do these two generations compare to the ones that came before them? Here, we'll look at the unique hands dealt to each generation in the homebuying game including debt, mortgage rates, home prices, and more. The cards are on the table. Let’s explore!
Homeownership Rates by Generation
Gen Z is still largely in the early stages of adulthood, with most members too young to own property. Despite this, some data suggests that Gen Z may have higher homeownership rates than Millennials and Gen X before them. According to CNBC, by the age of 24, about 24% of Millennials were homeowners, compared to nearly 28% of Gen Z. Trends like this will be interesting to keep an eye on as Gen Z continues to enter the housing market.
The generations before them seem to reveal an overarching pattern of fewer and fewer homeowners.
Generation | Percent of Homeowners in 2022 |
|---|
Silent Generation (Born 1928-1945) | 77% |
Baby Boomer (Born 1946–1964) | 78% |
Gen X (Born 1965–1980) | 69% |
Millennial (Born 1981–1996) | 52% |
Data from ApartmentList, 2023
As the Silent Generation move into care facilities and family homes, their home ownership rates have dropped, leaving Baby Boomers as the current leaders in homeownership percentages. This data also suggests that the trend of decreasing homeownership did not begin with Millennials, as commonly suspected. Instead, it would seem that homeownership has been on a downward trajectory for a few generations.
Generational Comparisons: Mortgage & Debt From 2021-2023
The downward trajectory of homeownership could partially be attributed to mortgage rates over time, and mortgage amounts held per generation. In addition to higher rates and average home costs, younger generations (in general) have more debt, which we can factor in to explain lower levels of homeownership. Observing a few years at a time can give us a better idea of the bigger picture — revealing potential trends as well as context. For more details, read the full article on Experian covering mortgages by generation.
Total debt carried by each generation includes auto loans, credit cards, student loans, and personal loans, to name a few. For a deeper look at the different kinds of debt carried by each generation, from credit cards to student loans, take a look at this consumer debt study.
For an interesting look at these factors side-by-side, we created a few handy charts to compare, showing data for each generation between 2021 and 2023.
*Like we previously mentioned, it’s important to note that while the entire Gen Z population is not old enough to own property, the following data represents the percentage that are homeowners, as of 2023.
The figures shown below are rounded to the nearest $50 for simplicity.
2021
Generation | Average Monthly Mortgage Payment | Average Mortgage Balance | Total Average Debt (Not Including Mortgage) |
|---|
Baby Boomer | $1,500 | $180,000 | $95,600 |
Gen X | $1,900 | $255,000 | $146,200 |
Millennial | $1,700 | $254,000 | $100,900 |
Gen Z | $1,200 | $185,000 | $20,800 |
2022
Generation | Average Monthly Mortgage Payment | Average Mortgage Balance | Total Average Debt (Not Including Mortgage) |
|---|
Baby Boomer | $1,500 | $187,650 | $96,050 |
Gen X | $2,000 | $271,100 | $154,650 |
Millennial | $1,900 | $280,350 | $115,800 |
Gen Z | $1,400 | $210,500 | $25,850 |
2023
Generation | Average Monthly Mortgage Payment | Average Mortgage Balance | Total Average Debt (Not Including Mortgage) |
|---|
Baby Boomer | $1,650 | $190,550 | $94,900 |
Gen X | $2,200 | $277,190 | $157,600 |
Millennial | $2,100 | $296,000 | $125,050 |
Gen Z | $1,650 | $230,150 | $30,000 |
*Data from Experian: Mortgage by Generation and Consumer Debt Study
Financial Review by Generation
Each generation has seen its share of flux and flow in the housing market, and beyond. While not every financial foe or market miracle is listed here (all of that might be best suited for the history books!), this overview breaks down some highlights.
Baby Boomers (Born 1946–1964)
Highlights: Baby Boomers often get flak from younger generations for having it easy. Afterall, they’re the generation with the most home equity, the fewest number of years left on their mortgage agreements, and the lowest monthly payments. But, as we see below, things haven’t always been smooth sailing for Boomers—thanks to some spiked mortgage rates during their peak buying years.
Now, in the 2020s, many Boomers have been able to pay off substantial portions of their mortgages. Here is their scorecard:
Peak Homebuying Years: 1970s–1990s
Mortgage Rates:
1970s: Averaged around 7–9%
1980s: Rates peaked at a record 18% in 1981, then gradually fell to 7–9% by the late 1980s
1990s: Rates hovered between 7–9%
Gen X (Born 1965–1980)
Highlights: Gen X entered the housing market during periods of economic stability, but also experienced the challenges of the 2008 housing crash. There is a higher average debt in this generation than others, likely due to mortgages, credit cards, and having larger households with more dependents than younger generations.
Peak Homebuying Years: 1990s–2000s
Mortgage Rates:
1990s: Rates hovered between 7–9%
2000s: Rates fell to 5–6%, hitting historic lows during the Great Recession (2008–2009)
Millennials (Born 1981–1996)
Highlights: Millennials faced high home prices and a low supply of homes despite record-low mortgage rates at the beginning of their peak homebuying years. What’s more, this generation saw a trend in delayed homebuying, which could be caused by a number of factors, including a relative delay in marrying and having children, and high rates of student debt.
This group currently dominates the housing market with the largest number of people looking for homes by generation.
Peak Homebuying Years: 2010s–2020s
Mortgage Rates:
2010s: Rates reached historic lows, averaging 3–4%
2020–2021: Some buyers secured rates below 3% during the COVID-19 pandemic
2022–2023: Rates surged above 7%, the highest since 2002, due to inflation and Federal Reserve tightening
Gen Z (Born 1997–2012)
Highlights: Gen Z is entering homeownership younger than previous generations, during a challenging period of high mortgage rates and limited housing supply. They typically take on smaller mortgages and have the lowest overall debt levels compared to other generations, thanks to leveraging technology and remote work opportunities to find affordable options.
Peak Homebuying Years: Beginning 2020s (ongoing)
Mortgage Rates:
The Future of Homeownership Across Generations
After shuffling the cards, it’s easier to see the ways that the market has changed and offered a unique experience for each generation’s homebuyers. The market is always changing, creating new opportunities and challenges for the current homebuying generations, and those still to come.
If you found this blog useful and want more industry insights, be sure to check out our Mortgage Essentials blog.
