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By Suzanne Blake
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Millennials are the only generation in the United States to have shown an increase in interest in buying a home within the next six months compared to September, according to a new survey from Realtor.com.
Why It Matters
The increase in millennial homebuying intent signals a notable divergence from broader generational trends, suggesting shifting priorities or economic pressures in the largest cohort of American adults.
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Persistently high mortgage rates and tight housing supply have made homeownership more challenging nationwide. Yet, millennials are demonstrating renewed determination to enter the housing market, even as high borrowing costs stall other groups.
Analysts suggest that these shifts may impact broader market conditions, including inventory levels, affordability, and pricing strategies, throughout 2025.
What To Know
The survey, conducted between April 10 and 11, sampled 2,203 U.S. adults and found that only the millennial generation reported an increased likelihood of purchasing a home in the next six months.
The proportion of millennial respondents planning to purchase a home within the next six months increased to 23 percent, up from 15 percent in September 2024. In comparison, overall intent among other generations—and among Americans at large—remained flat or declined.
High mortgage rates continue to weigh heavily on Americans' homebuying plans.
A majority of Americans, 69 percent, do not plan to engage in a real estate transaction within the next six months.
"Despite current market challenges and persistently high mortgage rates, Millennials are showing a notable increase in home buying interest this spring compared to last fall," said Laura Eddy, vice president of research and insights at Realtor.com in the report.
"Even though we found a change in Millennial homebuying intent, the influence of mortgage rates cannot be overstated, with the vast majority of Americans, including Millennials, prioritizing lower rates before committing to a purchase. The lock-in effect is still very much in effect "
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One-third of all respondents reported that they have delayed purchasing a home due to high mortgage rates, a finding similar to that in September.
Gen Z was the most cautious of high mortgage rates, preferring to sign a lease rather than take on home ownership.
Meanwhile, 41 percent of baby boomers said that mortgage rates do not impact their decision to buy a home.
Millennials currently make up 29 percent of homebuyers, the largest portion across all generations. The typical age of a first-time homebuyer was 38 years old in 2024, according to the National Association of Realtors.
"While many older households already own their home, and younger households are happy to, or can only afford to, rent, many millennial households are looking to get on the property ladder to start building wealth via homeownership, meaning this generation is a significant share of buyers," Hannah Jones, senior research analyst at Realtor.com told Newsweek.
In a separate Realtor survey, 78 percent of potential sellers believed interest rates would either remain the same or increase over the next 12 months. For those who think rates are going to increase, 43 percent said this would increase the likelihood of them selling.
What People Are Saying
Hannah Jones, senior research analyst at Realtor.com, said in the report: "Across much of our research we see a trend where potential homebuyers feel stuck when it comes to buying a home due to their current mortgage rate.
"Mortgage rates on top of an insufficient supply of budget-friendly homes complicates the affordability picture for many homeowners, especially first time homebuyers who do not have equity from their existing home to help offset mortgage rates. However, we expect that this lock in effect will ease as more homeowners grow tired of waiting for significant rate changes and as life factors such as jobs, kids and retirements drive more to make a home purchase."
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "Millennials are finally at a stage in life where homeownership feels possible. After years of renting and juggling student debt, many now have stable careers and the financial footing to make a move."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "As a generational group, millennials have suffered the largest blow for the rising prices and mortgage rates of houses in recent years. Many in this generation are entering better jobs with higher pay, and if they haven't taken the dip into home ownership yet, they're more than likely ready to want to dive in now."
What Happens Next
While some buyers are waiting for interest rates to decrease, experts have warned that rates are unlikely to return to pre-pandemic levels. However, there may be modest decreases that fluctuate with the economy.
However, a shift in millennial homebuying could impact prices across housing markets, experts say.
"Some millennials have built up enough capital for higher down payments and are ready to settle in," Thompson said. "This wave of demand could put upward pressure on pricing, but if affordability remains a challenge, it may also place a floor under housing prices."
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