Young Adults Struggle to Break Into Housing Market as Congress Seeks Solution

Homeownership rates decline for multiple age groups as mortgage rates and rental costs rise

Apr. 19, 2026 at 10:38pm

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A geometric abstract illustration featuring overlapping triangles and rectangles in shades of blue, red, and yellow, conceptually representing the complex economic factors impacting housing affordability for young adults.As young Americans struggle to break into the housing market, policymakers seek solutions to address the affordability crisis.Washington Today

Young adults are facing historically high barriers to homeownership, with a survey finding that only 38.3% of 28-year-olds owned their home in 2025, down from 42.5% of Gen Xers and 44.4% of baby boomers at that age. Congress is trying to address the issue with a bipartisan bill aimed at expanding the housing supply by streamlining regulations and providing grants for home repairs.

Why it matters

The decline in homeownership rates among young adults has significant implications for their financial stability and ability to build wealth. Policymakers are seeking solutions to increase housing affordability and accessibility, which could have broader economic impacts.

The details

Multiple factors are contributing to the challenges young adults face in breaking into the housing market, including historically high mortgage rates, a challenging job market for recent college graduates, and increased rental costs. From 2020-2024, renters paid a median of $100 more per month, reaching $1,413, which is prohibiting young adults from saving for a downpayment. Industry experts have emphasized the need to increase housing supply, citing 'red tape' at the local level, such as onerous permitting processes and restrictive zoning codes, as the primary culprit.

  • In January 2026, a survey by real estate brokerage Redfin found that 38.3% of 28-year-olds owned their home in 2025.
  • Thirty-year fixed mortgages averaged 6.3% as of April 2026, down from a peak of nearly 8% in late 2023 but still more than double the rates at the end of 2021.

The players

Redfin

A real estate brokerage that released a survey in January 2026 finding that 38.3% of 28-year-olds owned their home in 2025, down from 42.5% of Gen Xers and 44.4% of baby boomers at that age.

Daryl Fairweather

The chief economist at Redfin, who cited multiple reasons for why young adults are less likely to own a home than prior generations, including mortgage rates spiking over the last five years and increased rental costs.

White House Council of Economic Advisers (CEA)

A report released by the CEA found that homeownership rates declined for every five-year age group from 21-25 to 66-70 from 2000 to 2023, including a 5.1% drop for ages 31-35 and a 5.4% decline for ages 36-40.

Rep. Janelle Bynum

A Democratic congresswoman from Oregon who said during a roundtable that young adults 'shouldn't have to wait another 20 years to buy a home' after they get their first job.

Lawrence Yun

The chief economist for the National Association of Realtors, who said the inventory-to-sales ratio in the housing market is 'below historical norms' and recommended an additional '300,000 to 500,000 homes for sale' to bring the market 'closer to normal conditions.'

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What they’re saying

“'They're just having trouble affording housing in general, and that just makes the prospect of owning a home feel unachievable for them.'”

— Daryl Fairweather, Chief Economist, Redfin

“'It really helps to move that control from the local level at least to the state level. It's a bit difficult in our legal system to move it to the federal level, but the states need to step in and restrict how restrictive the local municipalities can get.'”

— Daryl Fairweather, Chief Economist, Redfin

“'restore hope for so many people who want to just experience their version of the American dream, which is so consistently homeownership.'”

— Sen. Tim Scott

“'designed to help increase housing supply and bring down costs' to boost homeownership.”

— Sen. Elizabeth Warren

What’s next

The House is expected to vote on the 21st Century Road to Housing Act, which passed the Senate with bipartisan support, in the coming weeks. If enacted, the legislation would streamline the regulatory process for building new homes and launch a program to provide grants and loans for needed home repairs.

The takeaway

The decline in homeownership rates among young adults is a complex issue driven by a combination of economic factors, including high mortgage rates, rising rental costs, and limited housing supply. Policymakers are working to address these challenges through legislative efforts aimed at increasing housing affordability and accessibility, which could have significant implications for the financial stability and wealth-building opportunities of younger generations.