Gen Z Doomed To Pay Rent Forever? Number Of First-Time Buyers Shrink As Average House Tops $422,000

Buying a starter home has rarely looked tougher. New National Association of Realtors data show just 1.14 million Americans bought their first house in 2024, barely a third of the 3.2 million who did so two decades ago and roughly half the historical norm.

What Happened: Realtors say the slide highlights how high prices and borrowing costs have pushed Gen Z and millennial buyers to the sidelines, often back to parents' homes or into long-term rentals, according to a report by Fortune.

The median existing-home price now tops $422,000, according to NAR, meaning a typical buyer needs about $117,000 in annual income to meet payments, which is nearly double what is required to rent the average apartment. With 30-year mortgage rates hovering near 7%, ...