BOSTON, May 6, 2025 — Generation Z, Millennials, and Generation X often see themselves as uniquely disadvantaged in achieving homeownership, pointing to skyrocketing home prices and high-interest rates.
Yet, a century-long analysis of U.S. housing data reveals that earlier generations, including Baby Boomers in the 1950s and 1960s, faced comparable barriers, such as restricted mortgage access that kept homeownership rates low. This challenges the narrative that today’s younger generations face unprecedented hurdles.
Data from the U.S. Census Bureau, Freddie Mac, and National Association of Realtors, spanning 1900 to 2025, shows that affordability, measured by the price-to-income ratio (median home price divided by median household income), and homeownership rates have fluctuated significantly, with no single generation escaping housing challenges.
Perceptions of Disadvantage
A 2024 Bankrate survey found 68% of Gen Z (ages 13–28), 62% of Millennials (ages 29–44), and 54% of Gen X (ages 45–60) believe homeownership is harder for them than for prior generations. With median home prices at $430,000 and median household incomes at $78,000 in 2025, their frustration is evident. On X, users like
@MillennialBuyer post, “Houses cost 5x my salary. Boomers had cheap homes handed to them.”
Dr. Emily Carter, a housing economist at Harvard University, acknowledges the sentiment. “Gen Z and Millennials face post-COVID price spikes, and Gen X recalls 7.79% rates in 2023,” she said. “But history shows housing crises are not new.”
Historical Affordability: Price-to-Income Ratios
The price-to-income ratio gauges affordability, with 2.6 considered “healthy.” In 2025, the ratio is 5.5, among the highest since 1900, straining Gen Z, Millennials, and Gen X. Historical data reveals similar or worse challenges:
- 1900–1910: Ratios of 3.8–4.0 burdened buyers reliant on cash or balloon loans with 30–50% down payments, limiting access to wealthier households.
- 1940–1960: Ratios were low (2.1–2.5), the most affordable era, but access was restricted. Baby Boomers, as children or young adults, saw their families or themselves face conservative lending practices. Through the 1950s and 1960s, banks demanded 20–30% down payments and favored established borrowers, keeping homeownership rates at 55–61.9%.
- 1980: A ratio of 3.1, paired with mortgage rates peaking at 18.63% in 1981, challenged Silent Generation and early Boomers with payments far exceeding today’s.
- 1990: Gen X faced a 4.2 ratio, with homes at $290,000 (2025 dollars) and incomes at $69,000, akin to current conditions.
- 2010: Millennials, entering the market post-2008 crisis, dealt with a 4.5 ratio, as home prices ($310,000 in 2025 dollars) outpaced incomes ($69,000).
“Boomers didn’t just walk into homes in the 1960s,” said Mark Rivera, a real estate analyst. “Mortgages were tough to get, and many rented for years.”
Homeownership Rates: A Broader Perspective
Homeownership rates reflect access to housing. In 2025, the rate is 65.5%, near the 2000 peak of 66.2%, when Gen X was in its prime buying years. Historical rates highlight diverse struggles:
- 1900–1930: Rates of 45–48% reflected scarce financing, with cash or balloon loans dominant. The 1930s Great Depression dropped the rate to 43.6%, hitting the Greatest Generation.
- 1950–1960: Rates rose from 55% to 61.9%, aided by FHA and VA loans post-1944. Still, Boomers’ families faced hurdles, as banks were selective, prioritizing high down payments or stable incomes. “Young Boomers or their parents often rented longer,” Carter said.
- 1970–1980: Rates climbed to 64.4%, as Boomers, now adults, accessed 30-year mortgages amid suburban growth, though high rates later slowed progress.
- 2000–2010: Millennials faced the 2008 housing crash, with rates dipping to 65.1% by 2010. Their homeownership rate was 32% (ages 25–34, 2010), compared to Gen X’s 40% at the same age in 1995.
- 2020–2023: Rates stabilized at 65.7–65.8%. Gen Z’s rate is 27% (ages 25–34, 2023), reflecting delayed milestones, not permanent exclusion.
“Gen Z and Millennials are buying later, but their ownership will rise,” Rivera said. “They’re following Millennials’ delayed path, not a dead end.”
Balancing the Narrative
Historical data disputes claims that Gen Z, Millennials, and Gen X are uniquely disadvantaged. Today’s 5.5 ratio is high, but 1900–1910 (3.8–4.0), 1990 (4.2), and 2010 (4.5) ratios, plus 1980s rate spikes, posed comparable barriers. Boomers, often perceived as advantaged, faced restricted mortgage access through the 1960s, with homeownership rates lagging until the 1970s. Racial disparities persist: in 2023, white homeownership was 75.3%, Black 45.9%, Hispanic 49.1%, and Asian 63.1%, echoing historical redlining.
Current challenges are undeniable. Post-COVID price surges, 2023’s 7.79% rates, and stagnant wages hit Gen Z, Millennials, and Gen X hard. “Saving for a down payment feels impossible,” said Sarah Nguyen, a 26-year-old Gen Z renter in Chicago. Millennials, like 38-year-old David Lopez in Atlanta, add, “The 2008 crash delayed us, and now prices are worse.” Yet, older generations faced equivalent struggles: Boomers in the 1960s dealt with high down payment demands, and the Silent Generation endured 1980s rates that doubled payments.
Path Forward
Opportunities exist. Federal Reserve rate cuts in late 2024 lowered mortgage rates to 6.83% by April 2025, easing borrowing costs. FHA loans, requiring 3.5% down, support first-time buyers. “Gen Z and Millennials should explore smaller markets or government programs,” Carter advised. “Affordability improves outside urban centers.”
The data reveals a shared struggle across generations, not a unique disadvantage for today’s youth. “Homeownership is always hard,” Rivera said. “The barriers just shift.”
Data Table: A Century of Housing Trends
The table below, sourced from Census, Freddie Mac, NAR, and BLS, tracks housing metrics from 1900 to 2025. It can be visualized as a dual-axis line chart, with homeownership rates on the left axis (0–80%) and price-to-income ratios on the right (0–6), plotted over years.
| Year | Median Home Price (2025 $) | Median Income (2025 $) | Price-to-Income Ratio | Homeownership Rate (%) |
|---|---|---|---|---|
| 1900 | $72,000 | $18,000 | 4.0 | 46.5 |
| 1910 | $80,000 | $20,800 | 3.8 | 45.9 |
| 1920 | $54,000 | $20,300 | 2.7 | 45.6 |
| 1930 | $62,000 | $29,000 | 2.1 | 47.8 |
| 1940 | $68,000 | $31,600 | 2.15 | 43.6 |
| 1950 | $92,000 | $37,500 | 2.5 | 55.0 |
| 1960 | $120,000 | $56,000 | 2.1 | 61.9 |
| 1970 | $180,000 | $77,000 | 2.3 | 62.9 |
| 1980 | $230,000 | $75,000 | 3.1 | 64.4 |
| 1990 | $290,000 | $69,000 | 4.2 | 64.2 |
| 2000 | $290,000 | $72,000 | 4.0 | 66.2 |
| 2010 | $310,000 | $69,000 | 4.5 | 65.1 |
| 2020 | $400,000 | $80,000 | 5.0 | 65.8 |
| 2023 | $435,000 | $79,000 | 5.5 | 65.7 |
| 2025 | $430,000 | $78,000 | 5.5 | 65.5 |
Notes: Pre-1940 data uses BLS estimates; 2025 is projected from 2023–2024 trends. Racial and regional disparities are not fully reflected.
Sources: U.S. Census Bureau, Freddie Mac, National Association of Realtors, Bankrate, Bureau of Labor Statistics, Harvard University, X user posts (anonymized).