The Millennial and Gen Z generations hold a growing share of today’s housing market activity. Together, they make up roughly 43% of the U.S. population,¹ 32% of all homebuyers and 21% of sellers.²

Understanding the common behaviors and characteristics of these two generations, along with their buying trends, can help mortgage professionals make informed decisions on how to better reach and work with these unique generations of homebuyers and sellers. 

Population Distribution in the U.S. by Generation

Population size influences which generations will drive housing trends in the years ahead. Larger generations, particularly those entering peak homebuying years, tend to exert more influence on demand.

As of 2025, the population distribution in the U.S. by generation¹ is as follows:

Silent Generation

• Born 1928-1945
• 4.4% of the U.S. population

Baby Boomer

• Generation Born 1946-1964
• 19.7% of the U.S. population

Generation X

• Born 1965-1980
• 19.3% of the U.S. population

Millennial Generation

• Born 1981-1996
• % of the U.S. population

Generation Z

• Born 1997-2012
• 20.8% of the U.S. population

Millennial and Gen Z: Homebuying and Selling Participation

Population composition helps shape housing demand but buying power isn’t necessarily equal across generations.

Millennials currently constitute the largest share of active homebuyers, while Gen Z is beginning to enter the market in measurable numbers. Their combined presence is growing as more young adults reach key life milestones, form new households, and transition from renting to ownership, despite facing tighter budgets and higher borrowing costs.

Millennials lead the nation in home purchase applications, accounting for nearly half of all mortgage application inquiries in major metros. Gen Z’s footprint, while smaller, continues to increase as they make up a rising share of first-time home purchase applications.

The data below highlights how both generations, Gen Z and Millennials, are participating in today’s housing market.

• Millennial buyers make up 29% of all buyers and 19% of sellers.²
• Gen Z makes up 3% of all buyers and 2% of sellers.²
• 71% of Younger Millennials (ages 24–32) and 36% of Older Millennials (ages 33–42) were first-time homebuyers in 2025.²
• Millennials continue to be the leading generation in the number of home purchase applications in the nation’s 50 largest metros, accounting for nearly half (49.7%) of mortgage inquiries in 2024.³
• Gen Z made up 13% of all first-time home purchase applications in 2024.⁴
• The median age of first-time homebuyers was 40 years old in the U.S. as of 2025, an all-time high.⁵

Together, these indicators show that Millennials continue to drive overall housing purchase activity, while Gen Z is steadily gaining traction as more young adults move into first-time homeownership.

Financial Profile for Younger Buyers

Data shows that younger buyers enter the market with distinct financial starting points. According to Experian, Millennials and Gen Z maintain “good” credit scores, though still trailing older generations.

Other data also shows that earnings rise with age, highlighting differences in buying power between younger and older Gen Z and Millennial homebuyers.

• Average Credit Scores of Generations (as of 2024)⁶:
  • Millennials: 691
  • Gen Z: 681
• Median Annual Wage by Age (as of 2024)⁷:
  • Gen Z (ages 20-24) had the lowest median annual wage of $41,184.
  • Gen Z and Millennials (ages 25-34) have a median annual wage of $58,500.
  • Older Millennials (ages 35–44) have a median annual wage of $69,264. 

What Matters Most in the Home Search

According to the National Association of Realtors (NAR) 2025 Home Buyers and Sellers Generational Trends Report, buyer behavior varies by generation.²

For Gen Z, neighborhood quality and affordability are the most important factors in searching for a home. For Millennials, a convenient commute to work, followed closely by proximity to friends and family are the most important factors when choosing where to buy a home.

Gen Xers, who consisted of 24% of recent homebuyers, were also the highest earners, with a median income of $130,000. This extra income may have allowed them to purchase the largest homes, averaging 2,000 square feet.

These preferences show how each generation approaches the market from a different financial starting point. For younger buyers, aligning budget with location is the main challenge, while older buyers’ higher incomes and equity position give them more flexibility in what and where they can purchase.

Obstacles and Buying Challenges

Student loan debt, slower early-career wage growth, and the rising cost of living are all factors that continue to shape how and when Millennials and Gen Z contemplate entering homeownership.

As of 2024, the average Gen Zer carried nearly $23,000 in student debt, while Millennials held more than $40,000 on average.⁸ These debt obligations limit monthly affordability and can make it harder to save for a down payment. According to NAR, nearly half of younger Millennials report having student debt, and many say it has delayed their ability to buy.²

Savings were also the primary source of down payments for these generations, with 71% of younger Millennials and 60% of older Millennials relying on personal savings alone. However, despite depending on personal savings, many younger buyers struggle to save enough for a substantial down payment due to factors like high housing costs, student debt, and slower wage growth. This puts buyers, especially single buyers, including the 30% of Gen Z who are single female purchasers, at a disadvantage in a market where prices and rents continue to climb. Some younger buyers turn to multigenerational living to reduce expenses, with 7% of Gen Z purchasing homes shared with family members. Because these financial hurdles are so common, understanding each generation’s obstacles can help mortgage professionals navigate pathways to ownership.

For example, buyers who assume they need a 20% down payment may not realize they could qualify with as little as 3% down when mortgage insurance is used. According to USMI, of the 800,000 households that purchased homes in 2024 using mortgage insurance, 65% were first-time homebuyers.⁹ And nearly 35% had annual incomes below $75,000. Helping younger borrowers navigate these options can make homeownership more attainable.

Social Media Use Among Gen Z and Millennials

Having a social media presence is no longer optional, especially when it comes to reaching Gen Z and Millennial homebuyers. These generations use social media to research, ask for recommendations, and stay up to date on what’s happening in the market. Keeping your social pages relevant and active may help increase your visibility and engagement to better connect with these homebuyers.

Research shows that 81% of Gen Z use social media daily, with 50% spending three or more hours on it.¹⁰ A majority (nearly 57%) fall into heavy-use categories, reporting between three to four hours, five to six hours or more than six hours of daily social media activity.

Another 24% spend one to two hours per day, while 11% typically use social media for 30 minutes to one hour. Only a small share, about 7% combined, use it less than 30 minutes per day or not at all.

Here are the top 5 social media platforms as of 2024 by age.¹¹

• Ages 18-29 (Gen Z/Younger Millennials)
  • YouTube: 93%
  • Instagram: 76%
  • Facebook: 68%
  • Snapchat: 65%
  • TikTok: 59%
• Ages 30-49 (Older Millennials/Gen X)
  • YouTube: 94%
  • Facebook: 78%
  • Instagram: 66%
  • LinkedIn: 41%
  • Pinterest: 43%

Additionally, don’t overlook video. Platforms like TikTok and YouTube are where younger buyers spend their time, but video content continues to drive the most engagement across every age group.

Different types of short video content can be used to boost your presence, such as introductory messages, homebuying educational content, news updates, and personal/local content.

Video marketing may help make a personal connection with these up-and-coming generations that text simply cannot achieve.

Leverage Mobile-Friendly Websites and Applications

A strong online presence is important for reaching any borrower, but for Millennials and Gen Z, a mobile-first experience may be a must. These buyers typically spend more time on their phones than on laptops, using mobile devices to search for homes, browse listings, compare rates, and begin the mortgage process.

As of 2025, 47.3% of web traffic in the United States originated from mobile devices,¹²and 81% of younger buyers (ages 26–34) use a mobile phone or tablet in their home search, according to the 2025 NAR Home Buyers and Sellers Generational Trends Report.2 This means that if a mortgage application, pre-qualification form, or resource page isn’t easy to navigate on mobile, buyers may simply move on, regardless of age, but especially if you are trying to reach Millennials and Gen Z.

Build Your Online Reviews

Millennials and Gen Z rarely choose a service provider without first validating them online, even when the service involves something as personal as financing a home purchase. For mortgage professionals, a digital presence still matters. Borrowers often look for signals of credibility before starting an application or sharing financial information. According to National Mortgage Professional, even just one positive review can improve your visibility, attract new clients and solidify your reputation.¹³

While borrowers may not always search for reviews tied to an individual, they do pay close attention to company-level ratings, testimonials and online reputation. This matters because more than 99% of US consumers read online reviews before making a purchase,¹⁴ and reviews influence 93% of consumers’ purchasing decisions.

Trust in online reviews is especially strong among younger adults. Approximately 42% of consumers trust online reviews as much as personal recommendations, and that number jumps to 91% for those ages 18–34.¹³

Turning Insights Into Action

As Millennials and Gen Z continue to shape the future of homeownership, knowing their preferences, financial realities and online behaviors can help mortgage professionals stay relevant and build stronger relationships with these borrowers. Each generation comes to the market with different needs, but all expect support that helps them overcome their biggest barriers to homeownership.

For mortgage professionals, that might mean creating clear pathways to affordability or offering guidance on low-down-payment options or giving borrowers a straightforward application experience.

Meeting younger buyers where they already spend their time, on social media, on their phones and researching online, can strengthen engagement and help move them along the mortgage process.

And as more first-time buyers look for flexible ways to enter the market, tools like mortgage insurance can play an important role in helping them purchase with less money down. By combining personalized support with the right loan solutions, mortgage professionals can position themselves as knowledgeable partners who help younger borrowers take their first steps toward homeownership.

¹MarketingCharts, “America’s Generations & Demographics,” accessed October 2025, https://www.marketingcharts.com/featured-30401
There may be some variance within generational definitions throughout the document since reference sources use slightly different date ranges. The chart does not include those born after 2012 or those in the Armed Forces overseas.

²National Association of REALTORS® (NAR), 2025 Home Buyers and Sellers Generational Trends Report, April 1 2025. https://cms.nar.realtor/sites/default/files/2025-03/2025-home-buyers-and-sellers-generational-trends-report-04-01-2025.pdf

³LendingTree, “Millennials Account for 49.7% of Mortgage Inquiries”, Sept 15 2025 https://www.lendingtree.com/home/mortgage/most-popular-cities-millennial-homebuyers/

⁴Cotality, “10 Markets Where Gen Z Can Buy a Home,” Feb 13 2025 https://www.cotality.com/insights/articles/10-markets-where-gen-z-can-buy-a-home/

⁵NAR, “NAR 2025 Profile of Home Buyers & Sellers Reveals Market Extremes,” REALTOR® Magazine, Nov 4 2025, https://www.nar.realtor/magazine/real-estate-news/nar-2025-profile-of-home-buyers-sellers-reveals-market-extremes

⁶Experian, “What Is the Average Credit Score in the U.S.?” Aug 8 2025, https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/

⁷Forbes Advisor, “Average Salary by Age.” https://www.forbes.com/advisor/business/average-salary-by-age/

⁸Experian, “State of Student Loan Debt,” https://www.experian.com/blogs/ask-experian/state-of-student-loan-debt

⁹USMI, “Press Release: New Report: 800,000 Low Down Payment Borrowers Purchased Homes in 2024 with Private Mortgage Insurance,” https://www.usmi.org/press-release-new-report-800000-low-down-payment-borrowers-purchased-homes-in-2024-with-private-mortgage-insurance/

¹⁰Attest, “Gen Z Media Consumption in 2025: Social Media, Streaming and Search Habits.” https://www.askattest.com/blog/research/gen-z-media-consumption

¹¹Pew Research Center, “Social Media Fact Sheet.”https://www.pewresearch.org/internet/fact-sheet/social-media/

¹²MobiLoud, “What Percentage of Internet Traffic Is Mobile?” ^{regardlesssimplyregardlessnavigatehttps://www.mobiloud.com/blog/what-percentage-of-internet-traffic-is-mobile}

¹³National Mortgage Professional, “A Good Review Is the Start of a Great Pipeline,” https://nationalmortgageprofessional.com/news/good-review-great-pipeline

¹⁴Capital One Shopping, “Online Reviews, Ratings & Research Statistics”. https://capitaloneshopping.com/research/online-reviews-statistics/

© 2025 Radian Group Inc. All Rights Reserved. 550 East Swedesford Road, Suite 350, Wayne, PA 19087. “Radian” is a brand of Radian Group Inc., including its licensed insurance affiliates. Mortgage insurance is provided and underwritten by Radian Guaranty Inc., a wholly owned subsidiary of Radian Group Inc. with home offices at 550 East Swedesford Road, Suite 350, Wayne, PA 19087 . Radian Guaranty Inc. is a monoline mortgage insurance company licensed to write business in all 50 states, the District of Columbia and Guam. This communication is provided for use by real estate or mortgage professionals only and is not intended for distribution to consumers or other third parties. This does not constitute an advertisement as defined by Section 1026.2(a)(2) of Regulation Z.