Gen Z and Millennials report harder homebuying experience than older buyers

The first-time homebuying process is proving more difficult for younger buyers, with 37% of Generation Z and 32% of Millennials reporting the experience was more challenging than expected, according to the Truework 2025 Recent Homebuyer Report. This compares with 19% of Gen X buyers and 7% of Baby Boomers who felt similarly. 

The survey of 1,000 Americans who purchased homes within the past 18 to 24 months also reveals that younger buyers are more likely to experience significant stress during the home purchase. One-third of Millennials and Gen Z buyers reported significant stress, compared with 22% of Baby Boomers. 

Financial insecurity was more common among younger buyers as well. Nearly 19% of Gen Z respondents felt financially insecure during the purchase, more than double the 8% reported by Baby Boomers and slightly higher than the 16% reported by Millennials and Gen X. Additionally, 27% of Gen Z buyers expressed pessimism about their financial future after buying a home, exceeding the overall average of 16%. 

Confidence in understanding mortgage financial terms also varied by generation. Fifteen percent of Millennials admitted to having no confidence in grasping these terms, higher than 11% of Gen Z buyers and twice the rate of Gen X and Baby Boomers, each at 8%. 

Refinancing plays a critical role in the financial outlook of many younger buyers. According to the report, 64% of Gen Z and 65% of Millennials say the ability to refinance their mortgage is important to their financial health. This is double the 32% of Baby Boomers who say the same. Across all recent buyers, 56% consider refinancing to a lower interest rate important or extremely important, with 25% calling it extremely important to their economic well-being. 

Truework co-founder and president Ethan Winchell said younger buyers are taking significant financial risks by relying on potential future rate declines to make refinancing feasible. Truework co-founder and CTO Victor Kabdebon noted that many buyers hope to lower monthly payments through refinancing, which may carry risks if rates do not fall soon. He also mentioned that buyers expressed frustration with how high interest rates limit the homes they can afford. 

The survey found that 90% of recent homebuyers experienced some level of stress during the process, with 30% reporting significant stress. West Coast buyers reported the highest levels of significant stress at 37%. Top stress factors included managing lengthy paperwork and limited inventory in preferred neighborhoods. Budgeting for unexpected expenses and gathering income and asset documents were cited as the main financial challenges. 

Despite the difficulties, 86% of buyers said they felt financially secure when purchasing, and 82% described themselves as optimistic about their financial future. The primary reasons for buying included necessity for family or personal reasons (32%) and the belief that home prices would not decline and might increase (21%). 

Truework provides automated income and employment verification solutions that help mortgage lenders and property managers reduce verification costs by up to 50% while improving data accuracy. Its platform achieves a 75% completion rate on borrower data, simplifying the verification process. 

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