Homeownership for adults under 25 dropped to 23.6% last year, down from a peak of 25.7% in 2020, as reported by Construction Coverage. Generational factors such as baby boomers again in place, plus high home prices and interest rates, have made it harder for young buyers to enter the market. Despite all this, home purchase loans across all age groups have decreased since the pandemic, but the under-25 group experienced the smallest drop, with their loans falling only by 5.1%, compared to a 22% decline for every other age group.
The Midwest leads in homeownership rates in this group, with Iowa topping the list at 11.9%. Other hotspots include metros such as Grand Rapids, Michigan and Cincinnati, Ohio, where lower home prices make ownership more attainable.
