The younger generation, especially Gen Z, is having a tougher time than the older generation when it comes to owning a house. The latest analysis of UK data on housing, employment and wealth shows that the current generation of younger adults is worse off than their parents. The study also shows that more than 40% of Gen Z adults are now living with their parents due to rising rents and unaffordable homes.
Only 15% of Gen Z young adults are able to afford to buy a house in the current and most expensive market. 45% of people in the late 1980s aged around 25 were able to afford owning a house. This is a stark contrast to how affordability has changed in the last 45 years. The survey included only adults born between 1997 and 2001, as those above this age group are mostly still in college or have just completed their graduation.
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The Dream of Owning a House: Gen Z Having It Tougher Than the Older Generations
Nearly half of the young adults in the 1980s could buy a house with their income. Only 15% in today’s generation are able to achieve the milestone, which is a dream for many. Stagnated wages, intense job market competition, lay-offs, and freezes in hiring are among the reasons for the unaffordability. Young adults had it much easier back in the 1980s, as the metrics and livability were different.
Even the Gen Z who can afford a house have their mortgage rates at the highest they have ever been. Home loans have been stretched to above 25 years, which eventually sucks up their savings capability. The younger generation believes that their future is being clipped by unrealistic home prices. “People say your 20s are the best years of your life. And these are the worst years of my life, by far,” said 26-year-old Adam Daytona to the BBC.