According to Gen Z and Millennials, buying a house is no longer within reach

Millennials and gen z have been in an endless debate with baby boomers. Those born between 1955 and 1964 cannot seem to fathom why there appears to be such a struggle to get on to the property ladder. The consensus in recent years is that becoming a home owner is no longer within reach for the younger generation

In the 1970s-1990s, boomers were doing a sweep stake and buying up houses at a fraction of the cost that it was today. According to gen z and millennial’s boomer counterparts, owning a home is still very much achievable given baby boomers ability to achieve home ownership.

Millennials and gen z have been branded as the lazy generation that no longer know how to work for the things they want. If all things being equal then that could be true but there are a number of contributing factors to consider that highlights a stark difference between buying a home as a boomer and buying one as a millennial or gen z. It simply comes down to, things have changed over time.

With that in mind, we have explored some of the potential contributing factors that are limiting gen z and millennial from buying their own home:

Landlords

Landlords hoarding the housing stock has been a long running debate. Despite the minority being single property landlords, there is still a significant amount of landlords holding onto a large supply of housing that is not accessible to the younger generations.

Increased inflation and interest rates

Current interest rates have been soaring and the cost of living crisis is showing no signs of easing. The average interest rate on a 2 year fixed deal is still floating just under 6% and the higher costs associated has made it harder for youngens to save money for a rainy day let alone a hefty deposit for a house.

Inflated house prices

A shortage of housing stock and an overwhelming demand has rampantly increased house prices over the years. Between boomers and gen z time periods, house prices have been on the rise with no clear signs of them decreasing by an impactful level.

Stagnant Wages

Coupled with rising house prices, stagnant wage growth has nearly crippled gen z and millennial prospects when it comes to home buying. Wages have not been able to keep up with house price growth therefore further pushing home ownership for gen z and millennials further out of reach.

There is an argument that homeownership is still very much within reach for gen z and millennials but the stark up hill battle and significant contributing factors associated with obtaining this goal are hard to ignore. Buying a home today is not the same journey as it once was and the complexity of achieving home ownership cannot fairly be compared between the different generations.

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