Think your chances of winning a lotto jackpot are low? That’s about how likely many young Americans feel about achieving homeownership anytime soon.
A new study from Zillow found that 52% of Gen Zers and 57% of millennials who don’t own a home yet believe that they would need to win the lottery to afford to buy.
Without the monumental luck of a lottery win, vast majorities of both cohorts say a drastic shift is in order to make a home purchase. Ninety-five percent of Gen Z and 94% of millennials say they would have to make life changes of some form in order to achieve homeownership.
This includes 39% of millennials and 27% of Gen Z believing they would need a second or third job, as well as 22% of millennials and 28% of Gen Zers saying a career change is required to afford a home. Meanwhile, 25% percent of millennials and 20% of Gen Z said they would have to move to a different city to afford a home purchase.
Impressively, 36% of Gen Zers said they would give up social media if it meant “magically having enough cash to put down on a starter home.” Twenty percent down on the typical home in the U.S. would be nearly $67,000, according to Zillow.
“These findings highlight the gap between Gen Z and millennials’ dream of owning a home and their ability to actually make it happen,” Zillow home trends expert Amanda Pendleton said. “Mortgage rates have been on the rise since last year, sending monthly housing costs through the roof — the typical monthly mortgage payment is now $431 higher than a year ago. Combine rising rates with record-breaking home value appreciation and it’s easy to understand why younger generations are wondering how they’ll ever be able to afford a home.”
Despite the current pessimism, the two generations remain hopeful for the future. Per Zillow’s survey, some two-thirds of Gen Zers and millennials polled said it’s still realistic to think they can buy a home in the next five years.
