Since
2020,
the
annual
report
has
tracked
the
evolving
attitudes
and
behaviors
of
homebuyers
ages
18
to
44.
The

2025
edition
draws
from
a
survey
of
1,000
respondents
across
Gen
Z
(ages
18
to
24),
younger
millennials
(25
to
34)
and
older
millennials
(35
to
44).

The
sample
was
balanced
across
gender,
race
and
income
to
reflect
the
diversity
of
today’s
housing
market.

Affordability
challenges
drive
innovation

Nearly
69%
of
respondents
cite

affordability
and
the
high
cost
of
living
as
primary
obstacles
to
buying
a
home,
with
many
turning
to
alternative
strategies.

These
include
co-buying
with
friends
or
family
(21%),
investing
in
fixer-uppers
(42%)
or
“house
hacking”
—
renting
part
of
their
home
to
generate
income
(19%).

Gen
Z,
in
particular,
shows
a
greater
willingness
to
pursue
nontraditional
paths.
According
to
the
report,
Gen
Z
is
embracing
alternative
strategies
more
enthusiastically
than
their
millennial
counterparts,
with
a
much
higher
likelihood
of
considering
co-buying
(32%
versus
18%
for
millennials).

Gen
Z
respondents
are
also
more
inclined
to
rent
out
portions
of
their
homes
(23%
versus
17%)
and
slightly
more
likely
to
move
to
lower-cost
areas
(41%
versus
38%).”

“These
trends
highlight
how
high
costs
of
living
and
housing
affordability
challenges
are
forcing
NextGen
buyers
to
get
creative,
moving
away
from
traditional
solo
homebuying
toward
collaborative
approaches
and
income-generating
property
strategies,”
the
report
explained.

“This
shift
reflects
both
necessity
and
a
pragmatic
adaptation
to
current
market
conditions,
with
younger
buyers
finding
innovative
ways
to
achieve

homeownership
despite
significant
financial
barriers.”

Trust
in
traditional
institutions
crumbling

Maybe
the
most
sobering
conclusion
of
the
report
is
the
erosion
of
trust
in
financial
professionals
and
institutions.
Only
40%
of
respondents
said
they
trust
banks
—
a
sharp
drop
from
61.5%
in
2024.
Trust
in

loan
officers
has
plunged
even
further,
down
to
19.5%.

The
roots
of
this
distrust
are
complex.
Millennials
and
Gen
Z
grew
up
during
the
2008
financial
crisis
and
the
COVID-19
pandemic,
periods
of
persistent
economic
turbulence.
Many
have
seen
firsthand
the
consequences
of
systemic
failure
and
inequality,
the
report
explained.

Only
20%
of
respondents
now
trust
loan
officers
to
guide
them
through
mortgage
decisions,
while
only
33%
believe
that

real
estate
agents
provide
reliable
advice.

Instead,
these
buyers
are
increasingly
relying
on
peer
communities,
social
media
and

artificial
intelligence
(AI)-powered
tools
for
support.

Digital-first
generation
turns
to
AI

With
35%
of
all
respondents
—
including
43%
of
Gen
Z
—
using
tools
like
ChatGPT
for
homebuying
information,
AI
is
becoming
a
critical
part
of
the
decision-making
process.

AI
offers
a
more
accessible,
personalized
experience
compared
to
traditional
sources.
The
report
suggests
that
this
technology
“cuts
through
information
noise,
providing
targeted,
digestible
guidance
that
simplifies
complex
financial
decisions.”

YouTube
has
also
emerged
as
the
leading
educational
tool,
used
by
66%
of
respondents,
followed
by
online
webinars
(42%)
and
podcasts
(35%).

Social
media
is
now
a
standard
part
of
the
research
phase
that’s
used
by
40%
of
Gen
Z
and
30%
of
millennials.

Financial
stress,
confidence
still
factors

Although
financial
stress
has
lessened
slightly
—
with
26%
of
those
surveyed
saying
they
feel
“very
stressed,”
compared
to
33%
last
year
—
more
than
two-thirds
still
experience
some
level
of
financial
strain.
The
top
reported
stressors
are
high
living
expenses
(63%)
and
unexpected
costs
(42%).

Financial
confidence
remains
an
issue
—
particularly
for
Gen
Z
—
with
only
43%
feeling
confident
in
their
financial
knowledge.
Confidence
is
lower
among
women
(38%)
compared
to
men
(47%).

More
than
half
(53%)
of
all
respondents
said
they
never
received
personal
finance
education
in
school.
Another
29%
said
it
was
optional
or
limited
to
a
brief
lesson.

Who
to
turn
to?

Real
estate
agents
remain
the
first
point
of
contact
for
many
millennial
buyers
(43%).

But
Gen
Z
is
more
likely
to
turn
to
financial
advisers
(36%)
—
a
notable
shift
from
millennials
(25%).
Mortgage
brokers
are
the
least
likely
source
for
an
initial
contact
from
either
group.

The
report
concludes
that
housing
professionals
have
both
a
challenge
and
an
opportunity.

“Rebuilding
trust
will
require
unprecedented
levels
of
transparency,
personalized
communication,
and
commitment
to
the
financial
wellbeing
of
NextGen
buyers,”
it
stated.
“The
path
forward
demands
more
than

marketing
—
it
requires
a
fundamental
realignment
of
professional
practices
to
meet
the
expectations
of
a
generation
that
values
authenticity,
accessibility,
and
genuine
financial
empowerment.”