Why Gen Z Doesn't Dream Of Owning A Home- And Might Be Right

Gen Z and the property ladder have never been further apart and this reflects the current Gen Z housing crisis. Home ownership has long been a major financial milestone for many. As well as having somewhere to call your own, a home is very often the largest financial asset many of us will have. Unfortunately, there are numerous reasons why Gen Z home ownership is so low.

The housing crisis in 2025

Even before the cost of living crisis, with rampant inflation and slow wage growth making everything more expensive, UK housing market trends make for unpleasant reading – and even more so for those in Gen Z.

Slowing delivery of new homes and an ageing population means the UK is lacking housing for new buyers that are coming to the market. This is best reflected in house prices – specifically for first-time buyers, the median property value (as of March 2025) was £307,500. And although there are a wide range of ways to structure a mortgage, the median deposit value at the same time was £48,350. [JY1] Regardless of age that is a considerable sum to anyone, let alone younger people.

The odds are stacked against young people, regardless of Gen Z financial habits. Research shows that Gen Z, on average, have around £171 left over each month after all their expenses and that is before they spend on things they want to do (travel, events etc). [JY2] Even if they reined in all of those wants, the average Gen Z would take over 263 months to reach the median deposit amount. Or 23 years.

Gen Z housing struggles are real and not going away any time soon. Despite the litany of first time buyer support available (including special products and government schemes), those in the Gen Z age bracket are having to think differently about home ownership. This goes beyond just being about money.

Home ownership is static and traditionally people would buy a house in their twenties and work in the same location for much of their career, even to the extent of holding the same job. Moves would be rare and people would often stay where they were.

Things are obviously different now. As well as career patterns being redrawn (due to career breaks, higher education, self-employment and people more prone to moving jobs), lifestyles are different too. People are free to move around more, explore horizons and not settle down so soon.

All of this means home ownership – as we used to know it – is not the financial milestone it used to be for Gen Z.

New living arrangements

To reflect new lifestyles, living arrangements are also changing to better suit Gen Z.

For one, more Gen Z are renting for longer which is leading to a larger rental market in the UK. Though not without its faults, more developers and housebuilders are creating new properties specifically for this cohort. Leases are being rewritten and financial support designed for longer renting practices. Combined, this means Gen Z are more able to find affordable and comfortable accommodation choices that work for them over homeownership.

This goes further to the rise in co-living. Whether this is with family members, friends or strangers through sites such as SpareRoom, living arrangements are being redrawn to align with Gen Z flexibility. Not only can this better fit with Gen Z career paths but it can also be a great way – if living with family – of helping reduce expenses and save for a deposit. There are also the options to move away and shun the housing market altogether. Moves to live and work abroad, as well as nomad living, are ways for Gen Z to circumvent home ownership altogether.

However, these can bring their own affordability challenges. When renting, Gen Z tenants are more vulnerable to rent hikes and have little to no autonomy over their accommodation. This means home improvements are off the table, as well as even simple things like painting walls or hanging up pictures. Additionally, unlike home ownership, money paid on rent is unlike mortgage repayments as it’s not contributing to an investment. Ultimately someone with a mortgage will one day have paid off their home and own the asset – this reality will remain out of bounds for those who continue renting.

Redefining financial futures

Gen Z are being forced to explore these alternatives through no fault of their own but it can be healthy to redefine financial futures – and Gen Z financial freedom - in this way. Home ownership may still be important to a lot of people, but it isn’t the financial milestone it used to be. Not only are people’s lives changing and much less static and fixed around one location, but there are other milestones people are increasingly exploring. Being able to finance a career break for instance, or start a business. Even just getting free from debt (particularly student loans) can be something many Gen Z people aspire to.

Cultural shifts in home ownership, and the role a home plays in our lives in general, is changing fast and this is particularly prevalent in housing trends for young people. Some in Gen Z will continue to pursue home ownership and everything it stands for, but for those who don’t they enjoy the flexibility of not saving for a down payment and the long-term commitments this brings once they buy a house.

[JY1]https://better.co.uk/mortgages/house-deposit

[JY2]https://uk.finance.yahoo.com/news/house-prices-finances-gen-z-millennials-050007049.html