Younger generations see homeownership as less important
The latest research from Yopa has revealed how attitudes towards homeownership vary between generations, showing that while the majority still aspire to own, its perceived importance has waned among younger buyers who also find the path to ownership more challenging than their parents did.
Yopa surveyed* Baby Boomers, Generation X, Millennials and Generation Z to understand their current living arrangements, their views on homeownership, and the barriers they face in achieving it.
The findings show a clear divide in levels of outright ownership. While 63% of Baby Boomers have paid off their mortgage, this figure drops sharply to 23% among Gen X, 6% for Millennials and just 2% for Gen Z.
Instead, younger buyers are more likely to be paying off a mortgage, with 58% of Millennials and 53% of Gen Z falling into this category.
Renting and alternative living arrangements are also more common among these younger cohorts, with 15% of Gen Z living with family rent-free – a far higher proportion versus previous generations – whilst 15% rent privately and a further 15% have had to resort to other housing arrangements.
Despite this, it’s clear that homeownership remains a high priority, with 60% of Gen Z respondents ranking it as important. However, there is a generational slide in this respect, as between 66% to 68% of previous generations had placed an importance on homeownership.
That said, there is widespread agreement about the benefits of owning. Almost every generation ranked financial security as the main advantage, with the exception of Millennials who placed greater weight on the stability homeownership provides for family life.
On one point, however, all generations are aligned: the belief that owning a home today is harder than it was for their parents.
The vast majority of Baby Boomers (73%), Gen X (87%), Millennials (93%) and Gen Z (79%) all agreed that ownership has become more difficult, with house prices standing out as the main barrier across all four groups.
Cost of living pressures and difficulties saving for a deposit were also cited prominently by younger generations.
Yopa’s National Franchise Director, Steve Anderson, commented:
“Homeownership remains a cornerstone of both personal achievement and financial security, but younger generations are feeling squeezed like never before – with rising house prices, the cost of living and higher mortgage costs all presenting significant barriers to achieving this life milestone.
So it’s no surprise that each generation is finding it more difficult than the last and, whilst it remains an important aspiration in life, we’re starting to see a generational slide when it comes to the degree of importance placed on turning the aspiration into reality.”
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