Homeownership Decline Among Young Americans Signals Broad Economic Shift

More than 58% of U.S. adults aged 18 to 34 now believe they will never afford a home, according to a 2025 survey by the National Association of Realtors. This represents a nearly 17-percentage-point increase from 2015, signaling a fundamental shift in generational expectations. As affordability remains out of reach—median home prices have risen 41% since 2015, while nominal wages grew just 19%—young adults are redefining success beyond property ownership. The move away from homeownership is reshaping consumer behavior. Renters aged 25–34 now spend 36% more on mobility and convenience services—such as ride-sharing, food delivery, and co-working memberships—than their counterparts in 2015. In parallel, household formation has slowed: only 6.2 million new households were created in 2025, down from an average of 8.1 million annually between 2010 and 2019. This demographic transformation affects markets beyond real estate. The commercial office sector has seen a 23% rise in demand for flexible workspace solutions among young professionals, while residential rental volumes surged 14% year-over-year through Q3 2025. Financial institutions report declining mortgage origination volumes with borrowers under 30, with originations dropping 41% since 2022, reflecting reduced demand for long-term debt products. The implications extend into retirement planning and asset allocation. With fewer young investors channeling savings into home equity, assets tied to real estate have declined as a share of household portfolios. Instead, participation in retirement accounts like IRAs and 401(k)s has increased among those under 35, driven by higher liquidity needs and lower risk tolerance regarding illiquid assets.