New research from Yopa has highlighted a generational shift in attitudes towards homeownership with younger buyers still aspiring to own property but placing less importance on it than their parents and grandparents, while also facing greater barriers to entry.
The survey of Baby Boomers, Generation X, Millennials and Generation Z reveals stark differences in ownership levels.
Almost two-thirds (63%) of Baby Boomers now own their home outright, compared with 23% of Gen X, 6% of Millennials and just 2% of Gen Z. By contrast, 58% of Millennials and 53% of Gen Z are paying off a mortgage.
OTHER OPTIONS
Younger generations are also more likely to rent or rely on alternative living arrangements. Among Gen Z, 15% live rent-free with family, 15% rent privately and a further 15% have had to turn to other options.
While homeownership remains a goal for most, its perceived importance has declined. Six out of 10 (60%) of Gen Z respondents ranked it as important, compared with 66–68% of previous generations.
“Financial security was identified as the key benefit of ownership.”
Across all groups, financial security was identified as the key benefit of ownership, although Millennials placed more emphasis on the stability it provides for family life.
There is widespread agreement, however, that owning a home has become harder than for previous generations.
That view was shared by 73% of Baby Boomers, 87% of Gen X, 93% of Millennials and 79% of Gen Z, with rising house prices cited as the main obstacle, alongside cost-of-living pressures and difficulties saving for a deposit.
FEELING THE SQUEEZE
Steve Anderson, Yopa’s National Franchise Director, said: “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.”
