Gen Z and Millennials say they’re willing to make sacrifices to fulfill the dream of homeownership

The dream of homeownership is a powerful motivator for both Gen Z and Millennials, new research shows. Even though they face financial hurdles, these would-be buyers prioritize the long-term financial security a home can provide.

Despite uncertainty among prospective homebuyers and current owners, more than half of would-be buyers (52%) say now is a better time to buy than a year ago. Three of every four of this group expect home prices and interest rates to fall and are waiting for more favorable conditions to buy.

Those were among findings in the 2025 Bank of America Homebuyer Insights Report.

The research confirmed the dream of homeownership is still highly desired by both Gen Z and Millennials—and they’re willing to make sacrifices in pursuit of that dream:

• More than a third (34%) of Gen Z prospective homebuyers would consider living with family or friends while waiting to buy a home.
• A growing number of Gen Z homeowners said they purchased their home with siblings: in 2025 it was 22%, up from 12% in 2024 and 4% in 2023.
• 21% of these Gen Zers say they will rely on a loan from parents or family for their down payment, compared to just 15% of the general population.

“Even with the challenges they face, younger generations still understand the long-term value owning a home offers them and many are doing what it takes to get there,” said Matt Vernon, the bank’s head of consumer lending. “They are finding creative ways to afford down payments and working hard to improve their financial futures.”

Of Gen Z current homeowners, 30% said they paid for their down payment by taking on an extra job, up from 28% in 2024 and 24% in 2023.

Other strategies they cited include using down payment assistance or tapping parents for help with down payment costs. (Northwest Multiple Listing Service report 20,416 listed properties in its database were eligible for the Down Payment Resource program.)

The research also revealed prospective homebuyers’ growing belief in AI as a tool to aid in the homebuying process. Among Gen Z respondents, 37% expect AI will help them better understand the process, and 40% say it will be the most valuable resource five years from now.

The BofA Insights report found more than six of every 10 homeowners and prospective buyers (62%) are concerned about the impact of severe weather and natural disasters when it comes to owning a home. An even larger number (73%) believe it is important to buy in areas where there is a lower risk of these events.

About two-thirds (65%) of current homeowners are taking measures to prepare their home for the risk of severe weather. Nearly a quarter of current owners (23%) reported experiencing weather-related property damage or loss in the past 5 years.

Sparks Research surveyed 1,000 homeowners and 1,000 renters for its national online survey on behalf of Bank of America.