Why 1.8M Gen Z And Millennials Vanished From The Housing Market In 2025

Housing Market Insights - The average down payment for a home is currently 14.4%, approximately $30,400, which would take a median-income household seven years to save at current savings rates [1] - The U.S. housing supply gap has widened to 4.03 million units, resulting in nearly 2 million potential young households being unable to enter the market [5] - By 2025, the minimum income required to purchase a median-priced starter home is projected to reach about $86,000, surpassing typical entry-level salaries for individuals in their 20s and early 30s [2] Impact on Younger Buyers - Many younger households have delayed forming independent households due to limited supply and worsening affordability, with approximately 1.82 million Gen Z and millennial households affected [4] - The inactivity of younger buyers in the housing market leads to older homeowners being less likely to sell, further constraining inventory and driving prices higher [6] Investment Opportunities - Platforms like Arrived Homes allow younger investors to participate in real estate with low barriers, enabling fractional ownership of rental properties starting at $100 [3][13] - The trend of delayed homeownership among younger generations has created a market for alternative investment platforms that provide access to real estate without the need for full down payments or mortgages [3]