Young Adults Struggle to Break Into Housing Market

Congress seeks solutions as homeownership rates decline across age groups

Apr. 19, 2026 at 2:05pm

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A geometric abstract illustration using bold shapes and primary colors to conceptually represent the declining homeownership rates across different age groups in the United States.Visualizing the generational divide in homeownership, as younger adults struggle to break into the housing market.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, compared to 42.5% of Gen Xers and 44.4% of baby boomers at that age. Factors like rising mortgage rates, challenging job markets, and increased rental costs are prohibiting young people from saving for a downpayment. Congress is working on bipartisan legislation to address the housing supply shortage, which experts say is a key driver of high prices.

Why it matters

Declining homeownership rates among young adults have significant implications for wealth-building, financial stability, and the overall health of local communities. Addressing these barriers is crucial for ensuring the next generation can achieve the American dream of homeownership.

The details

The White House Council of Economic Advisers found that homeownership rates declined for every five-year age group from 21-25 to 66-70 from 2000 to 2023. This includes a 5.1% drop for ages 31-35 and a 5.4% decline for ages 36-40. Redfin chief economist Daryl Fairweather cited factors like spiking mortgage rates, a challenging job market for recent graduates, and increased rental costs as prohibiting young adults from saving for a downpayment. The median age of first-time home buyers was 35 in 2025, up from 31 in 2008.

  • The Redfin survey was released in January 2026.
  • Thirty-year fixed mortgage rates averaged 6.3% as of April 2026.
  • The White House CEA report was released in 2023.

The players

Daryl Fairweather

Chief economist at real estate brokerage Redfin.

Lawrence Yun

Chief economist for the National Association of Realtors.

Sen. Tim Scott

Republican senator from South Carolina and chair of the Senate Banking, Housing and Urban Affairs Committee.

Sen. Elizabeth Warren

Democratic senator from Massachusetts and ranking member of the Senate Banking, Housing and Urban Affairs Committee.

Rep. Janelle Bynum

Democratic representative from Oregon.

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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

“It would 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

“The bill is 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 amended 21st Century Road to Housing Act in the coming weeks, after the Senate passed the bill with bipartisan support. If enacted, the legislation would streamline regulations for new home construction and provide grants and loans for home repairs.

The takeaway

Declining homeownership rates among young adults highlight the need for comprehensive policy solutions to address the housing affordability crisis. By tackling supply-side barriers and empowering state and local governments, Congress aims to restore the dream of homeownership for the next generation.