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From December 2025 to February 2026, our research team analyzed homeownership data from the U.S. Census Bureau, the National Association of Realtors®, the Federal Reserve, and Redfin to measure what affects who owns a home in America. This analysis reveals a complex landscape where younger generations are making small gains but remain years behind the homeownership milestones of their parents, while the age of the typical first-time buyer has reached a new all-time high.
The latest data from the U.S. Census Bureau shows a notable increase in homeownership among the youngest group, while rates for middle-aged and older Americans saw slight declines. The national homeownership rate held steady at 65.7%.¹
| Age Group | Q4 2025 Rate | Q4 2024 Rate | Year-Over-Year Change |
|---|---|---|---|
| Under 35 | 37.9% | 36.3% | +1.6 pp |
| 35–44 | 60.9% | 61.4% | -0.5 pp |
| 45–54 | 69.5% | 71.0% | -1.5 pp |
| 55–64 | 76.7% | 76.3% | +0.4 pp |
| 65 and over | 79.0% | 79.5% | -0.5 pp |
Source: U.S. Census Bureau, Quarterly Residential Vacancies and Homeownership, Fourth Quarter 2025¹
The under-35 cohort posted the only significant year-over-year gain (+1.6 pp), while the traditionally stable 45–54 group saw the largest decline (-1.5 pp). This is a shift worth monitoring, though the drivers, whether downsizing, market corrections, or sampling variation, are not yet clear from this data alone.
The homeownership rate for those 65 and over (79.0%) is more than double the rate for those under 35 (37.9%). This 41-point gap has been a persistent feature of the U.S. housing landscape for decades, though the recent gains among younger buyers suggest a slow narrowing may be underway.
While age provides a direct demographic snapshot, analyzing homeownership by generation reveals deeper trends about economic opportunity and wealth accumulation over time. Based on a Redfin analysis of Census data, younger generations, despite recent gains, have not achieved the same homeownership rates as their parents and grandparents did at the same age.
| Generation | 2025 Homeownership Rate | Change from 2024 |
|---|---|---|
| Gen Z (19–28) | 27.1% | +1.0 pp |
| Millennials (29–44) | 55.4% | +0.5 pp |
| Gen X (45-60) | 72.7% | -0.2 pp |
| Baby Boomers (61-79) | 79.9% | +0.3 pp |
Source: Redfin analysis of U.S. Census Bureau data, January 2026²
Note: Generational age ranges are as defined by Redfin for their 2025 analysis.
While both Gen Z and Millennials saw their homeownership rates increase in 2025, they still lag significantly behind previous generations. According to Redfin's analysis of historical Census data, at age 28, only 38.3% of Gen Zers owned a home, compared with 42.5% of Gen Xers and 44.4% of Baby Boomers.²
A similar pattern holds for Millennials. Redfin's same-age comparison shows that 57.2% of Millennials were homeowners at age 36, whereas 61.2% of Gen Xers and 63.7% of Baby Boomers owned homes at that age.² Rising costs and shifting economic conditions have reshaped the timeline for younger generations, but the year-over-year gains for both Gen Z (+1.0pp) and Millennials (+0.5pp) indicate that the path to ownership is bending, even if it hasn't fully closed the gap. For more on this, see our First-Time Home Buyer Guide.
The challenges facing younger buyers are starkly illustrated by the rising age of the typical first-time homebuyer. According to the National Association of Realtors®, this metric has been steadily climbing for decades, reaching an all-time high in 2025.
| Year | Median Age of First-Time Homebuyer |
|---|---|
| 1981 | 29 |
| 2000 | 31 |
| 2024 | 38 |
| 2025 | 40 |
Source: National Association of Realtors®, November 2025³
NAR data shows that the median age of a first-time homebuyer has increased by 11 years since 1981, from 29 to 40. This delay has significant implications for wealth building, as it shortens the time younger generations have to build equity through homeownership.
NAR's annual survey methodology and respondent composition shifted between 2024 and 2025, which makes direct year-over-year comparisons difficult. With that context, the share of first-time buyers fell to 21% in 2025, down from 32% the previous year.³ Even accounting for methodological factors, the overall direction is clear: the market is increasingly shaped by repeat buyers, who have existing home equity to leverage, and older buyers, who often have more cash and higher incomes. (Note: This figure is based on NAR's Profile of Home Buyers and Sellers survey methodology and reflects respondent composition, not total market volume.)
Income remains one of the strongest predictors of homeownership. Data from the Federal Reserve shows a direct and powerful correlation between family income and the likelihood of owning a home.
| Family Income | Homeownership Rate |
|---|---|
| Less than $50,000 | 35% |
| $100,000 or more | 85% |
Source: Federal Reserve Board, May 2025⁴
Note: Data is for 2024, published in May 2025. Middle-income brackets ($50,000–$99,999) fall between these extremes; the full distribution is available in the Federal Reserve's report.
Households earning $100,000 or more are roughly 2.4 times as likely to own a home as those earning under $50,000. This gap underscores the affordability challenges facing lower-income households in the U.S. housing market.
The income gap is even more pronounced for younger adults. Among those under 60, the homeownership rate for the highest income bracket was more than three times that of the lowest.⁴ This is partly because older adults may have already paid off their mortgages, making them less reliant on current income.
As younger buyers navigate a competitive market, their priorities are shifting. Recent buyer surveys reveal a growing emphasis on long-term value and operational costs, not just curb appeal.
| Feature | Percentage of First-Time Buyers Citing as "Very Important" |
|---|---|
| Neighborhood Safety | 88% |
| Low Maintenance Costs | 76% |
| Energy-Efficient Appliances & Windows | 71% |
| Updated HVAC System | 68% |
| Good Insulation | 65% |
Source: Meta-analysis of Zillow, NAR, and NAHB data, February 2026⁵
Note: Data is a meta-analysis of buyer surveys from Zillow, NAR, and the National Association of Home Builders published in 2025.
After neighborhood safety, practical financial concerns dominate first-time buyer priorities. Low maintenance costs (76%) and efficient appliances and windows (71%) are now considered more important than cosmetic features, signaling a shift toward long-term affordability.
Home performance features, such as low operating costs, HVAC quality, and insulation, now collectively outrank cosmetic upgrades. In Pearl's framework, these features contribute to a home's Operations performance, reflecting how much the home costs to run and maintain day-to-day. (Pearl's Energy pillar covers generation and management systems like solar, battery storage, and smart devices.) This represents a meaningful shift: younger buyers are prioritizing home operating costs over aesthetics, likely driven by tighter budgets and an 11-year delay in entering homeownership.
The data above points to a practical question that buyers and homeowners increasingly face: if performance and operating costs matter this much, how do you actually evaluate them? Most listings highlight square footage and finishes, not insulation quality or HVAC age. And for sellers, there's a parallel challenge: how do you credibly communicate the investments you've made in your home's performance?
This is the gap that home performance data is starting to fill. The Pearl Home Performance Registry™ helps buyers and homeowners understand how a home performs by organizing what is already in the public record. Through the Registry, Pearl provides a Pearl Home Performance Snapshot for virtually any single-family home in the U.S.: a free, public preview of how the home performs– drawn from the same data lenders and insurers already rely on.
Pearl delivers even more when a homeowner claims their property and adds first-hand information about the home's performance features. This process evolves the initial Home Performance Snapshot into a more detailed performance profile, which can then yield a Pearl SCORE™. This rating provides a structured evaluation across five pillars: Safety, Comfort, Operations, Resilience, and Energy. For sellers, this proactively tells the home’s efficiency story, offering a transparent view of its operational value from the start. For buyers, it builds confidence by providing a verified framework for evaluating the home’s long-term performance.
| Who | Key Concern | How Home Performance Data Helps |
|---|---|---|
| Younger First-Time Buyers (Under 40) | Avoiding unexpected costs and high utility bills on a tight budget. | A Pearl Snapshot gives first-time buyers an early look at factors that may affect the cost of running a home – using publicly available property and permit data.5 |
| Mid-Career Buyers (40–60) | Balancing a larger mortgage with long-term value and family comfort. | A Pearl SCORE™ rates a home's current performance across Safety, Comfort, Operations, Resilience, and Energy– giving buyers a structured way to evaluate what matters most to them.5 |
| Homeowners & Sellers | Presenting the home transparently and building buyer confidence. | Claiming a home and documenting its performance features gives sellers a credible, structured way to tell their home's performance story, highlighting strengths proactively rather than waiting for buyer questions.5 |
| Older / Downsizing Buyers (60+) | Finding a low-maintenance home with predictable costs for retirement. | Strong ratings in the Comfort and Operations pillars reflect a home that currently performs well on temperature consistency and day-to-day costs – two factors many downsizing buyers prioritize.5 |
The data reveals a clear trend: while the path to homeownership has shifted for younger generations, they are entering the market with a new set of priorities. Their focus on long-term value, low maintenance, and energy efficiency is reshaping how homes are bought and sold.
For buyers and homeowners alike, having access to transparent home performance data is becoming an increasingly valuable part of making confident, financially sound decisions about the largest investment most people will ever make.
Zillow. (2025). Zillow Group Report on Consumer Housing Trends.
National Association of Realtors®. (2025). Home Buyers and Sellers Generational Trends Report.
National Association of Home Builders. (2025). What Home Buyers Really Want.
