Gen Z Buyers Struggle in a Fast-Paced Housing Market

[Luis Fajardo]

For many young Americans, buying a home has always been a major milestone—one that represents financial stability and long-term investment. However, Gen Z is facing a more competitive homebuying environment than previous generations. With high home prices, rising mortgage rates, and intense market competition, securing a property has become increasingly difficult.

A recent survey found that over 60% of real estate agents reported instances where Gen Z buyers lost out on homes due to delayed decision-making, missed appointments, or hesitation in making offers. In today’s housing market, where inventory remains tight and competition is fierce, speed and decisiveness have become critical factors in securing a home.

A Market Defined by Scarcity and Competition

The U.S. housing market is still struggling with the effects of years of underbuilding following the 2008 financial crisis. As a result, inventory levels have remained historically low, particularly in markets where demand is high. While home prices have cooled slightly from their peak, affordability remains a significant barrier.

According to the National Association of Realtors, homes in the U.S. spent an average of 36 days on the market in January 2025, a slight increase from last year but still well below historical norms. For more affordable properties—those priced under $400,000—the timeline is even shorter, with many homes receiving offers within two weeks of being listed.

This fast-moving market poses a particular challenge for first-time buyers who may not be as familiar with the urgency required in competitive bidding situations. Unlike seasoned investors or repeat homebuyers who understand how to move quickly, many younger buyers approach the process with caution, often leading to missed opportunities.

Why Gen Z Is Struggling to Keep Up

One of the key reasons Gen Z buyers are struggling is delayed decision-making. Many approach the homebuying process with a research-heavy mindset, wanting to weigh every option before making a commitment. While this is a prudent approach in many financial decisions, real estate does not allow for the same level of deliberation. Agents report that younger buyers often request multiple showings of the same property or hesitate for days before making an offer—only to find that the home is already under contract.

Another major challenge is hesitation over pricing and bidding wars. Investors and repeat buyers, accustomed to the realities of the market, are often willing to bid aggressively to secure a property. Many Gen Z buyers, however, hesitate to engage in bidding wars, fearing they may be overpaying or stretching their finances too thin. With 40% of homes still selling above asking price, waiting for a “better deal” often means missing out entirely.

Financing is also a common issue. Unlike cash buyers or those with extensive experience in the market, many younger buyers are still navigating the mortgage process while actively house hunting. In competitive bidding situations, sellers are more likely to accept offers from buyers who already have pre-approval or immediate financing in place. Many Gen Z buyers, however, are still in the process of securing their down payment funds or comparing loan options when they start making offers, putting them at a significant disadvantage.

Looking Ahead

Despite these challenges, Gen Z homeownership demand remains strong. Younger buyers are still eager to enter the market, and as the economy shifts, there is potential for conditions to become more favorable. However, the broader structural issues of affordability, housing supply, and financing access will continue to shape the market in the years ahead.

For now, the homebuying process remains a challenge for many in this generation. As long as housing inventory remains tight and competition stays high, Gen Z buyers will need to navigate a market that favors speed, decisiveness, and financial preparedness.