New survey shows millennials stretching for homeownership as affordability pressures keep mounting
Millennial home buyers entered 2026 still caught between urgency and uncertainty, with many prepared to stretch far beyond traditional affordability guardrails to get a foothold in the market.
A new Clever Offers survey of 1,000 millennials planning to buy a home in 2026 found that 40% of millennial home buyers are desperate to buy a home this year, even as nearly all reported major obstacles to ownership.
The report said “97% of millennials say they have at least one barrier to homeownership,” with the most common challenges all rooted in cost: “homes are too expensive (46%), interest rates are too high (40%), and saving for a down payment (34%).”
Clever noted that “although the median U.S. home costs $410,800, 59% of millennials plan to spend less than $400,000 on their home purchase, including 67% of first-time buyers.”
Stretching budgets, but reluctant to cut lifestyle costs
Despite that pressure, the survey found millennials were divided on how far to adjust their day‑to‑day spending.
Clever reported that more than 1 in 3 millennials (34%) say homeownership would be more affordable if they had better spending habits, yet some respondents would not reduce their spending on gym memberships (77%), subscription services (71%), and coffee (67%).
At the same time, buyers were prepared to compromise in other ways. According to the report, 55% of millennials, including 58% of first-time buyers, would be willing to purchase a fixer-upper, and half would buy a house with asbestos while 51% would buy a house with pests.
Affordability squeeze goes beyond one generation
The Clever findings landed in a market already defined by generational tension. The National Association of Realtors’ latest generational trends research showed that millennials’ share of purchases fell to 29% of buyers as baby boomers reclaimed the top spot, after millennials had previously made up 38% of all purchases.
Millennial homeownership remained far higher in non‑metropolitan areas – 52% in non-metropolitan parts of the country, but only 35% in the nation’s largest urban markets – as buyers sought relief from high prices in major cities.
Industry professionals have also highlighted the drag of recurring expenses. “The millennial buyer has more ongoing monthly expenses than previous generations,” Mark Worthington, a branch manager at Churchill Mortgage, told Mortgage Professional America, pointing to “cell phone, streaming services, delivery services and coffee shop memberships” that “eat into the affordability of housing.”
Rates, regrets and the road ahead
Clever’s survey suggested that rate expectations continue to drive timing decisions.
“More than three-fourths of millennials (78%) say the possibility of lower mortgage rates in 2026 would entice them to buy,” and “a majority of millennial home buyers (51%) would only consider a mortgage if it came with an interest rate of 6% or less,” even as “49% would consider accepting an interest rate of more than 6%.”
Many respondents were already looking back with second thoughts. The report said “82% of millennial homeowners have at least one regret about their previous home purchase,” often tied to “compromising on location for a home in their budget” or “rushing the purchase.”
For lenders and originators, the key takeaway is a buyer cohort that remains motivated but heavily constrained – willing to stretch on payments, property condition and location, yet still anchored by high prices, elevated rates and debt burdens built up over years.
“I am seeing millennial buyers being extremely cautious,” Worthington said.
“They ask a lot of questions and want to see information backed up with facts. They often want to start the process without a great deal of personal contact and work through electronic means of communication."
In that environment, clear communication on risk, realistic budgeting and product structure appear likely to matter as much as rates alone.
Clever Real Estate, via its Clever Offers platform, conducted an online survey of 1,000 American millennials who indicated they planned to buy a home in 2026. Respondents were polled about their home‑buying plans, views on homeownership and financial situation between Oct. 9 and Nov. 1, 2025.
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