If you think homeownership is out of reach for Gen Z, here’s a number worth knowing: Gen Z now makes up 4% of home buyers, up from 3% last year. That’s still small, but it’s growing, even with home prices near record highs. Many of these buyers are doing it alone, on one income, without help from their parents.
Homeownership isn’t a myth for this generation. It just looks different than it used to.
Here’s what Gen Z home buyers are doing to buy a home.
They use down payment assistance
Gen Z uses down payment assistance programs more than any other generation. These are usually run by states, cities, or nonprofits, and often cover 3–5% of the home price as a grant or low-interest loan. They can often be paired with low-down-payment loans like FHA (3.5% down), USDA (0% down in some areas), or VA loans. Learn more here.
According to the National Association of Realtors (NAR), Gen Z relies less on cash gifts from parents than millennials do. This generation is leaning on programs, not family money.
They’re open to moving somewhere cheaper
Gen Z buyers aren’t tied to expensive cities. Many are finding success in more affordable places like Indianapolis, St. Louis, Pittsburgh, and Kansas City, where homes can go for $185,000–$230,000. Some buy where it’s affordable now, then figure out their job situation around that.
They buy small and build equity early
Instead of waiting for a dream home, Gen Z buyers often choose something smaller, a typical purchase is about 1,600 square feet. Buying earlier, even small, gives your money more time to grow. The median homeowner’s net worth is about 40 times that of a renter.
They get creative
Some strategies showing up again and again:
- Co-buying with a friend or family member. About a third of Gen Z say they’re considering it
- House hacking. Buying a duplex, living in one unit, and renting the other to help cover the mortgage
- A parent co-signing without living in the home
- Working a side job specifically to save for a home. More than a quarter of Gen Z say they’re doing this
They see a home as a way to build wealth
About 87% of Gen Z say homeownership is important for building wealth, not just a lifestyle milestone. That mindset is why many are willing to buy something smaller, in a less exciting city, on one income. The real goal isn’t the perfect house. It’s the equity and stability that come from owning instead of renting.
Do they have family money behind them?
Mostly, no. The “Great Wealth Transfer”, trillions of dollars moving from older Americans to their kids is real, but it’s concentrated at the top. Households worth $10 million or more, just 2% of all U.S. households, are expected to receive over half of that money. Most of what’s transferring right now is also going to Gen X and older millennials first, not Gen Z. And only 13% of Gen Z buyers got a cash gift from family, actually less than millennials.
Most Gen Z homeowners are buying without inherited wealth which is exactly why the strategies above matter so much.
Is this possible in San Diego?
San Diego is one of the most expensive markets in the country, so it’s a fair test. The median single-family home runs around $1,050,000, and only about 11–15% of local households can afford that.
It’s still possible, but it takes two things: being flexible about where in the county you buy, and stacking every assistance program you can find.
What makes it work:
- Look at condos, not the median single-family home. Attached homes like condos, townhomes had a countywide median closer to $660,000, well below the single-family number.
- Stack assistance programs. San Diego County’s First-Time Homebuyer program offers a deferred loan of up to 22% of the purchase price for a down payment, plus help with closing costs, for homes up to $743,000 and buyers earning under 80% of the area’s typical income. This can often be combined with CalHFA’s MyHome program for even more help.
- Use a low-down loan. FHA needs just 3.5% down, VA loans need 0% for eligible veterans. Combined with assistance programs, some buyers get in with well under $30,000 out of pocket instead of $100,000+.
These are examples to show the shape of the math, not exact quotes — talk to a lender for your real numbers.
| Typical San Diego home | Condo entry point | Condo + assistance stacked | |
| Home price | ~$1,050,000 | ~$650,000 | ~$650,000 |
| Down payment | 20% (~$210,000) | 10% (~$65,000) | 3.5% FHA (~$23,000) |
| Income needed | ~$220,000+/year | Roughly $120,000/year alone, less with two incomes | About the same, assistance lowers the cash you need, not the income |
This isn’t financial advice — talk to a local lender or housing counselor for numbers specific to you.
San Diego County’s median household income is about $103,000. The national median Gen Z income is about $76,000. Neither is enough alone for a typical San Diego home which is why co-buying, dual incomes, or house hacking matter so much here specifically.
It is not impossible. Prices are high, rates haven’t dropped much, and the typical first-time buyer today is about a decade older than in the past. Most Gen Zers who’ve bought a home didn’t get lucky. They made a plan, stayed patient, and compromised on location, size, or timing.
The Gen Zers buying homes right now don’t have trust funds. They treated it like a project: researched every assistance program, got comfortable buying alone, stayed open to a smaller home or a new city, and started before they felt fully “ready.”
If homeownership feels out of reach, remember: it feels that way to everyone buying a home today.
Navigating your very first home purchase takes time, strategy, and a clear understanding of the local landscape. As an experienced real estate team, we love helping the next generation of buyers map out a realistic timeline to achieve their goals. Reach out anytime.
Sources
Fortune. “Gen Z Is Carving a Different Path in the Housing Market by Doing It Alone.” Fortune, 16 Apr. 2026, fortune.com/2026/04/16/gen-z-buys-homes-single-millennials-first-time-homebuyers/.
National Association of Realtors. “How Gen Z Buyers Are Succeeding in the Housing Market.” NAR.realtor, www.nar.realtor/magazine/real-estate-news/how-gen-z-buyers-are-succeeding-in-the-housing-market.
San Diego Real Estate Hunter. “San Diego Housing Market 2026: Forecast, Predictions & Trends.” San Diego Real Estate Hunter, 16 May 2026, www.sandiegorealestatehunter.com/blog/san-diego-real-estate-market-forecast/.
