The 2025 NextGen Homebuyer Report, conducted in partnership with National MI, provides an in-depth analysis of the evolving homeownership landscape for younger generations. Available as both a comprehensive written report and a set of presentation slides, this fifth annual study delves into the homebuying aspirations, challenges, and behaviors of Gen Z and Millennials. The report compiles responses from 1,000 participants aged 18-44, offering a data-driven perspective on financial realities, trust in financial institutions, and the role of digital engagement in the home buying journey. The research uncovers pivotal trends in affordability strategies, shifting trust dynamics, and the increasing reliance on digital tools that are transforming the path to homeownership.
Trust in financial institutions has seen a dramatic decline. Banks, which previously held a trust level of 61.5%, have dropped to 40%. Loan officers fare even worse, with trust levels plummeting to just 19.5% in the past year. This trend signals a pressing need for financial institutions to rebuild credibility and strengthen relationships with younger buyers through transparency, education, and personalized support.
With housing affordability continuing to be a major concern, younger buyers are employing creative strategies to make homeownership feasible. 42% plan to purchase fixer-uppers as a cost-saving measure. 21% are considering co-buying with friends or family. 19% intend to rent out portions of their homes to offset mortgage costs.
The digital revolution is reshaping how younger buyers educate themselves about homeownership. 66% of respondents use YouTube for homebuying education. 40% of Gen Z rely on social media platforms for real estate research. 43% utilize AI tools such as ChatGPT to gather financial and homebuying information.
The report highlights key distinctions between Gen Z and Millennials in their approach to homeownership. Gen Z is 78% more likely than Millennials to consider co-buying (32% vs. 18%). Confidence in personal finance varies significantly, with only 43% of Gen Z feeling confident in their financial knowledge, compared to 53% of Millennials.
The findings reveal a significant gap in financial literacy, with 53% of respondents reported receiving no formal financial education in school, and an additional 29% indicated that financial education was either optional or limited to a short lesson.
As affordability concerns persist, trust in financial institutions declines, and digital engagement grows, industry professionals must adapt to meet the evolving needs of Gen Z and Millennials. Addressing financial education gaps, fostering trust, and leveraging digital tools will be essential to guiding the next generation of homebuyers toward successful homeownership.
About NextGen Research by Kristin Messerli Since the launch of the first NextGen Homebuyer Report in 2020, the study has surveyed over 7,000 respondents aged 18-44, creating a robust longitudinal dataset that tracks the shifting trends in homeownership aspirations. The 2025 survey continues this tradition with a strong commitment to diversity, ensuring representation across different racial, income, and gender demographics. This year’s findings underscore the growing significance of financial education and accessibility as key factors in overcoming barriers to homeownership.