Past generations are outpaced by Gen Z in the race to own a home.

Gen Z has taken the lead in the homeownership race.

According to Redfin, the homeownership rate for adult Gen Zers in 2023 was higher than the homeownership rate for millennials and Gen X when they were 24.

Although the race is close, Gen Zers have a slightly higher rate of homeownership at 27.8% compared to millennials at 24.5% when they were the same age, according to Redfin. Gen X had a lower rate at 23.5%.

Dominic Verrichia, a 24-year-old homeowner from Ventnor City, New Jersey, expressed his happiness with purchasing a home in October 2020 when the 30-year fixed mortgage rate was 2.83%, according to Freddie Mac.

"Verrichia expressed uncertainty about buying a home, stating, "I wasn't sure if it was the right decision and if it would cause me financial strain.""

According to the National Association of Realtors, only 3% of homebuyers are from Gen Z, who are entering homeownership with the lowest income and are unlikely to be married or have children under 18 in their household.

Despite the challenging market for home buyers, nearly three-quarters of Gen Zers plan to purchase a home within the next six years, according to Rocket Mortgage, a mortgage lender.

"The housing market is currently very challenging, according to Jessica Lautz, the chief economist at the NAR. With limited housing inventory available for a prolonged period, home prices have increased significantly. This has been exacerbated by the fact that interest rates are currently higher than they have been in recent years, making it even more difficult for people to afford homes."

What are the implications of Gen Z being able to afford homes sooner than their elders for the housing market and the U.S. economy?

Gen Z is currently outpacing previous generations in the race to own a home.