Faced with high debt and low affordability, Gen Z buyers in search of more than listings: they need education and trust
Despite growing interest in homeownership, Gen Z remains the least represented generation among buyers. According to the National Association of Realtors, just 3% of U.S. homebuyers in 2025 were aged 18 to 25 - the smallest share by age group. In many cases, the barriers are less about desire and more about readiness.
“They’re nervous, anxious, unprepared,” says Risha Kilaru of OriginPoint, a mortgage expert based in Northern California. “I’ve done over 5,000 loans. Just 16 were Gen Z.”
Home prices, income gaps, and debt realities
The numbers are sobering. In Northern California, where Kilaru is based, the average starter home according to Zillow now costs around $1 million. “To buy that without debt, you need to earn around $180,000,” she says. “How many 25-year-olds are doing that?”
On top of high prices, Gen Z buyers often carry significant debt. A 2024 LendingTree report found that the average Gen Z adult has about $3,300 in credit card balances - excluding student loans. Yet many rely on bank app credit scores that may be inflated or use different scoring models than lenders do. “They think their Wells Fargo score is real. It’s usually 40 to 60 points off,” Kilaru says.
Education must start earlier
Much of the challenge, she argues, is rooted in financial literacy. “This generation hasn’t been taught how credit works,” she says. “I started going into high schools when my kids were in 11th and 12th grade to teach classes on credit awareness - how to build a score, how to manage cards. That’s where it begins.”
She also hosts weekend seminars in large condo communities with tech tenants, focusing on saving, debt management, and navigating the homebuying process. “People need to understand not just the 'how' but the 'why' of ownership,” she says.
Bridging the digital divide
Engaging Gen Z also means showing up where they are - on social media. Kilaru produces quick-hit video content under the banner Mortgage Minute with Risha, offering mortgage tips in a visually relatable format. “It’s got to be real but also look good,” she says. “If I’m in Paris or New York, I’ll shoot a reel there. The background matters. The handbag matters. That’s how they connect.”
She points to the Bilt credit card - popular among Gen Z renters for allowing rent payments on credit - as a signal of what this generation values. “If they could put their mortgage on a card and earn points, you’d see homeownership rates jump,” she says. “It aligns with how they already think.”
Achieving financial goals
For all the challenges, the financial case for homeownership remains clear. Homeowners in the U.S. now hold a median net worth of around $400,000, compared to just $10,400 for renters according to data from the Aspen Institute. Mortgage experts like Kilaru lean on these comparisons to drive the message home. “We show them: here’s what rent costs over five years, here’s what appreciation looks like on a $1 million home,” she says. “The numbers speak for themselves.”
Digital tools - like Mortgage Coach, VP Power, and cost-of-waiting calculators - help illustrate long-term outcomes. But Kilaru insists that empathy and education are just as important as data. “Gen Z doesn’t just need a pre-approval letter,” she says. “They need to see a path. And they need someone to walk it with them.”
