The data: Gen Z’s homeownership rate ticked up in 2025, per Redfin but remains below levels for their predecessors. Just 27.1% of adult Gen Zers owned homes. Among 28-year-olds—the oldest in the cohort—38.3% were below the rate for Gen X (42.5%)and baby boomers (44.4%) at the same age and roughly in line with millennials (36.8%).

Zoom out: Gen Zers are increasingly aging into homeownership as they earn more, pay off debt, and put down roots. But many aspiring homeowners have been priced out of the market, and current homeowners locked into low rates are hesitant to sell, according to our March 2025 report US Home Lending Trends 2025. By comparison, that shows in data for millennials, too: Consumers aged 36, according to the data, own homes at 57.2% vs. 63.7% of baby boomers at the same age.

Implications for banks: Banks should embed themselves in life-stage journeys rather than pushing products per se, according to our June 2025 report, Future-Proofing Banking Through Customer-Centric Journeys. Institutions should look beyond traditional digital banking features to solve customers’ immediate financial problems—such as improving mortgage readiness for Gen Zers.

Otherwise, consumers will go to fintechs or nontech lenders with more sophisticated digital services for their complex financial needs. In a digital homeownership journey, must guide customers through the relevant financial products and services and nonfinancial factors associated with a purchase decision. The process may start with a mortgage, continue to insurance, and circle back to home equity lines of credit to support home improvements.