Some young people are becoming homeowners despite record-high home prices
Young Americans buying homes in their early 20s are part of a "rare and exclusive club," one economist says.
Lucas Charles was 22 years old when he bought his first home.
The accountant, who bought a house in Lancaster, Pa., where he grew up, still drives the same car he bought as a sophomore in high school and avoided taking on student debt by working the night shift at his local grocery store while he was in college.
These financial sacrifices and hard work helped propel Charles to homeownership.
He is not alone. Despite typical first-time buyers navigating a challenging housing market in recent years, a growing number of young adults have been able to become homeowners. In 2025, the median age of a first-time home buyer was around 32, according to an analysis of federal mortgage data by the Mortgage Bankers Association. Gen Zers are between 13 and 28 years old.
Even with the odds stacked against them in the form of high home prices and mortgage rates, young Americans are pulling savvy financial moves that set them up to afford homeownership.
"People buying homes in their early 20s are in a rare and exclusive club," Heather Long, chief economist at Navy Federal Credit Union, told MarketWatch. Fewer than one in 10 mortgage applicants at her financial institution are under 26 years old, she said.
In 2025, only 27% of Gen Zers nationwide owned their home, the smallest share among all age groups, according to analysis of Census data by real-estate brokerage Redfin. But that figure was up from 26% a year prior.
MarketWatch spoke to five homeowners in their 20s about their purchases. Some have a 7% mortgage rate, while a few had purchased homes during the pandemic when interest rates were lower and bidding wars were more commonplace.
The similarities these young homeowners share are financial prudence and their location. Almost all of them live in cities where home prices are relatively more affordable. Some received financial help from their families or a place to stay so they could focus on saving money.
"It's a struggle to save for a down payment or even closing costs in your 20s," Long said, as the median home price nationally was about $400,000 in 2026.
Homeowners who successfully bought homes in their 20s are "resourceful," she added. "They have prioritized saving and finding a stable career that doesn't require a lot of student-loan debt."
Lucas Charles worked through college so he could pay for his tuition and avoid student debt.
Lucas Charles, Lancaster, Pa.
Age at the time of purchase: 22
Occupation: Accountant
Year of purchase: 2024
Annual income at the time: $80,000
Why buy: Wanted to start building equity, and also wanted a washer and dryer in his unit.
What he bought: Three-bedroom manufactured home
What he paid: $80,000
How he financed it: Down payment of 21%, 23-year mortgage, rate was 9.6%.
How he saved: Charles worked through college so he could pay for his tuition and avoid student debt. He paid all cash for his car that he bought in high school. Charles also went to community college for the first two years he was out of high school and lived with his parents, which allowed him to save on rent he would have otherwise paid a landlord. At that time, he also worked the night shift at a grocery store for two-and-a-half years, earning $12.50 an hour at first and then working his way up to $20.50 an hour.
The process: Charles wanted to keep his monthly mortgage payment below $1,300 so he focused on manufactured homes, instead of more expensive single-family homes. "I didn't want to stretch myself for the monthly payment and become house poor," he said. He went to six open houses, he recalled, and ended up finding a house listed for $89,000. The seller wanted to get rid of the property quickly, so Charles and his real-estate agent negotiated the sale price down to $80,000. But finding the house wasn't as tricky as getting a mortgage, he said. He got denied several times for a home loan, despite having stable income and a good credit history, and a credit score of 773 at the time. He ended up getting a loan with a very high interest rate which he considers "nuts."
Alex and Alyssa Kibbe said that they both grew up in families that were "money conscious."
Alex and Alyssa Kibbe, Marysville, Wash.
Age at the time of purchase: 25
Occupation: Finance (Alex) and consulting (Alyssa)
Year of purchase: 2023
Annual combined income at the time: $160,000
Why buy: The couple had just moved to the Seattle area from Santa Barbara, Calif., where Alyssa Kibbe had finished her masters degree in environmental science and management. They wanted to start building equity with their first home.
What they bought: 1,000-square-foot, three-bedroom home
What they paid: $520,000
How they financed it: Down payment of 12%, 30-year mortgage, rate was 6.8%
How they saved: Parents helped with a down payment, and they also saved aggressively. She worked through college so she did not have student debt, and he worked while living with his parents, saving what he would otherwise be paying in rent to a landlord. They sold a 2021 Mitsubishi car for $15,000 and bought a cheaper Prius that had good gas mileage for $8,000 in cash.
The process: They had initially budgeted for homes around $530,000 in the suburb, which is about 40 miles north of Seattle. They were looking for move-in ready homes. They only made one offer because they needed a home fast, as they were living in an Airbnb while house hunting. That offer got accepted by the seller.
Thoughts on homeownership: Alyssa said that both she and her husband grew up in families that were "money conscious."
It helped that "from day one in our marriage, we were saving and investing," she added, "so when we did buy, we had money for the house, and emergency savings." With one child and another on the way, the couple has since sold that house and purchased another in St. Louis, Mo. They moved to the more-affordable city to be closer to family.
Related: This has been one of the most affordable U.S. cities to buy a home in for more than 134 years
Buying a home is "not as unreachable as the market makes it look," Kibbe said. "We sacrificed vacations, but in the end, we have a home that's ours."
Alexia and Daniel Bolin were able to negotiate their home's price down to $185,000.
Alexia and Daniel Bolin, Columbia, S.C.
Age at the time of purchase: 23 and 25
Occupation at the time: Education (Alexia) and state law enforcement (Daniel)
Year of purchase: 2021
Annual combined income at the time: $80,000
Why buy: The couple, who were not married at the time, were renting a home that they didn't like. They wanted to start building equity in a home.
What they bought: 2,100-square-foot, three-bedroom single-family home
What they paid: $185,000
How they financed it: Down payment of 6%, 30-year mortgage, rate was 3.125%
How they saved: Alexia worked through college and was a determined saver. The couple had tucked away enough money for a down payment.
The process: The couple looked at three houses. Daniel wanted a house in a neighborhood that felt similar to the one where he grew up. They found a home they liked for $215,000 which was previously listed as a rental. The inspection report had some red flags, which they used as leverage to get the sale price down to $185,000.
Thoughts on homeownership: "I don't think people in my age group have lofty expectations. We're just trying to get what we can get," Daniel Bolin said.
He recalled a key conversation he had with his dad when he was in high school, after they moved away from their childhood home. Daniel said he didn't like the new house. His dad had told him that "you don't buy the house for what it is, you buy the house for what it can be."
Having a roommate helps Cooper Fojas pay his mortgage.
Cooper Fojas, Bristol, Conn.
Age at the time of purchase: 22
Occupation: Production assistant at a sports-news company
Year of purchase: 2025
Annual income at the time: $50,000
Why buy: Just started his career, and was looking to stay in the area long term.
What he bought: Two-bedroom condo
What he paid: $170,000
How he financed it: Down payment of 18%, 30-year mortgage, rate was 7%
How he saved: Mom paid half of the down payment and he paid the other half. Fojas had various jobs on campus, from dining services to writing newsletters, over his college years. He saved and invested that money in the stock market. Fojas currently pays his entire monthly mortgage payment by himself.
The process: After his mother suggested that it might be a good idea to look at buying instead of renting in Bristol, since he wanted to stay there and work in the sports-news industry, they began looking at condos. They looked at four units in central Connecticut, and ended up settling on one that was close to work, which was a priority for him. He has since found a roommate who helps pay a substantial portion of the mortgage.
Thoughts on homeownership: "I sometimes forget that I am the landlord now," Fojas said. Buying a home was "definitely not something that was ever on my radar," he added. "I don't feel like a grown-up yet, and now I pay a mortgage, and fix pipes and clean gutters."
Henry Snyder said living in a less-expensive city like Louisville was a key reason why he could afford a home.
Henry Snyder, Louisville, Ky.
Age at the time of purchase: 23
Occupation at the time: Director of finance at Churchill Downs Racetrack
Year of purchase: 2021
Annual income at the time: $70,000
Why buy: After finishing his undergraduate degree in Boston, Snyder moved back to Louisville in 2021 and decided to buy his primary home to start building equity.
MW How these Gen Z workers managed to buy homes in their early 20s
By Aarthi Swaminathan
Some young people are becoming homeowners despite record-high home prices
Young Americans buying homes in their early 20s are part of a "rare and exclusive club," one economist says.
Lucas Charles was 22 years old when he bought his first home.
The accountant, who bought a house in Lancaster, Pa., where he grew up, still drives the same car he bought as a sophomore in high school and avoided taking on student debt by working the night shift at his local grocery store while he was in college.
These financial sacrifices and hard work helped propel Charles to homeownership.
He is not alone. Despite typical first-time buyers navigating a challenging housing market in recent years, a growing number of young adults have been able to become homeowners. In 2025, the median age of a first-time home buyer was around 32, according to an analysis of federal mortgage data by the Mortgage Bankers Association. Gen Zers are between 13 and 28 years old.
Even with the odds stacked against them in the form of high home prices and mortgage rates, young Americans are pulling savvy financial moves that set them up to afford homeownership.
"People buying homes in their early 20s are in a rare and exclusive club," Heather Long, chief economist at Navy Federal Credit Union, told MarketWatch. Fewer than one in 10 mortgage applicants at her financial institution are under 26 years old, she said.
In 2025, only 27% of Gen Zers nationwide owned their home, the smallest share among all age groups, according to analysis of Census data by real-estate brokerage Redfin. But that figure was up from 26% a year prior.
MarketWatch spoke to five homeowners in their 20s about their purchases. Some have a 7% mortgage rate, while a few had purchased homes during the pandemic when interest rates were lower and bidding wars were more commonplace.
The similarities these young homeowners share are financial prudence and their location. Almost all of them live in cities where home prices are relatively more affordable. Some received financial help from their families or a place to stay so they could focus on saving money.
"It's a struggle to save for a down payment or even closing costs in your 20s," Long said, as the median home price nationally was about $400,000 in 2026.
Homeowners who successfully bought homes in their 20s are "resourceful," she added. "They have prioritized saving and finding a stable career that doesn't require a lot of student-loan debt."
Lucas Charles worked through college so he could pay for his tuition and avoid student debt.
Lucas Charles, Lancaster, Pa.
Age at the time of purchase: 22
Occupation: Accountant
Year of purchase: 2024
Annual income at the time: $80,000
Why buy: Wanted to start building equity, and also wanted a washer and dryer in his unit.
What he bought: Three-bedroom manufactured home
What he paid: $80,000
How he financed it: Down payment of 21%, 23-year mortgage, rate was 9.6%.
How he saved: Charles worked through college so he could pay for his tuition and avoid student debt. He paid all cash for his car that he bought in high school. Charles also went to community college for the first two years he was out of high school and lived with his parents, which allowed him to save on rent he would have otherwise paid a landlord. At that time, he also worked the night shift at a grocery store for two-and-a-half years, earning $12.50 an hour at first and then working his way up to $20.50 an hour.
The process: Charles wanted to keep his monthly mortgage payment below $1,300 so he focused on manufactured homes, instead of more expensive single-family homes. "I didn't want to stretch myself for the monthly payment and become house poor," he said. He went to six open houses, he recalled, and ended up finding a house listed for $89,000. The seller wanted to get rid of the property quickly, so Charles and his real-estate agent negotiated the sale price down to $80,000. But finding the house wasn't as tricky as getting a mortgage, he said. He got denied several times for a home loan, despite having stable income and a good credit history, and a credit score of 773 at the time. He ended up getting a loan with a very high interest rate which he considers "nuts."
Alex and Alyssa Kibbe said that they both grew up in families that were "money conscious."
Alex and Alyssa Kibbe, Marysville, Wash.
Age at the time of purchase: 25
Occupation: Finance (Alex) and consulting (Alyssa)
Year of purchase: 2023
Annual combined income at the time: $160,000
Why buy: The couple had just moved to the Seattle area from Santa Barbara, Calif., where Alyssa Kibbe had finished her masters degree in environmental science and management. They wanted to start building equity with their first home.
What they bought: 1,000-square-foot, three-bedroom home
What they paid: $520,000
How they financed it: Down payment of 12%, 30-year mortgage, rate was 6.8%
How they saved: Parents helped with a down payment, and they also saved aggressively. She worked through college so she did not have student debt, and he worked while living with his parents, saving what he would otherwise be paying in rent to a landlord. They sold a 2021 Mitsubishi car for $15,000 and bought a cheaper Prius that had good gas mileage for $8,000 in cash.
The process: They had initially budgeted for homes around $530,000 in the suburb, which is about 40 miles north of Seattle. They were looking for move-in ready homes. They only made one offer because they needed a home fast, as they were living in an Airbnb while house hunting. That offer got accepted by the seller.
Thoughts on homeownership: Alyssa said that both she and her husband grew up in families that were "money conscious."
It helped that "from day one in our marriage, we were saving and investing," she added, "so when we did buy, we had money for the house, and emergency savings." With one child and another on the way, the couple has since sold that house and purchased another in St. Louis, Mo. They moved to the more-affordable city to be closer to family.
Related: This has been one of the most affordable U.S. cities to buy a home in for more than 134 years
Buying a home is "not as unreachable as the market makes it look," Kibbe said. "We sacrificed vacations, but in the end, we have a home that's ours."
Alexia and Daniel Bolin were able to negotiate their home's price down to $185,000.
Alexia and Daniel Bolin, Columbia, S.C.
Age at the time of purchase: 23 and 25
Occupation at the time: Education (Alexia) and state law enforcement (Daniel)
Year of purchase: 2021
Annual combined income at the time: $80,000
Why buy: The couple, who were not married at the time, were renting a home that they didn't like. They wanted to start building equity in a home.
What they bought: 2,100-square-foot, three-bedroom single-family home
What they paid: $185,000
How they financed it: Down payment of 6%, 30-year mortgage, rate was 3.125%
How they saved: Alexia worked through college and was a determined saver. The couple had tucked away enough money for a down payment.
The process: The couple looked at three houses. Daniel wanted a house in a neighborhood that felt similar to the one where he grew up. They found a home they liked for $215,000 which was previously listed as a rental. The inspection report had some red flags, which they used as leverage to get the sale price down to $185,000.
Thoughts on homeownership: "I don't think people in my age group have lofty expectations. We're just trying to get what we can get," Daniel Bolin said.
He recalled a key conversation he had with his dad when he was in high school, after they moved away from their childhood home. Daniel said he didn't like the new house. His dad had told him that "you don't buy the house for what it is, you buy the house for what it can be."
Having a roommate helps Cooper Fojas pay his mortgage.
Cooper Fojas, Bristol, Conn.
Age at the time of purchase: 22
Occupation: Production assistant at a sports-news company
Year of purchase: 2025
Annual income at the time: $50,000
Why buy: Just started his career, and was looking to stay in the area long term.
What he bought: Two-bedroom condo
What he paid: $170,000
How he financed it: Down payment of 18%, 30-year mortgage, rate was 7%
How he saved: Mom paid half of the down payment and he paid the other half. Fojas had various jobs on campus, from dining services to writing newsletters, over his college years. He saved and invested that money in the stock market. Fojas currently pays his entire monthly mortgage payment by himself.
The process: After his mother suggested that it might be a good idea to look at buying instead of renting in Bristol, since he wanted to stay there and work in the sports-news industry, they began looking at condos. They looked at four units in central Connecticut, and ended up settling on one that was close to work, which was a priority for him. He has since found a roommate who helps pay a substantial portion of the mortgage.
Thoughts on homeownership: "I sometimes forget that I am the landlord now," Fojas said. Buying a home was "definitely not something that was ever on my radar," he added. "I don't feel like a grown-up yet, and now I pay a mortgage, and fix pipes and clean gutters."
Henry Snyder said living in a less-expensive city like Louisville was a key reason why he could afford a home.
Henry Snyder, Louisville, Ky.
Age at the time of purchase: 23
Occupation at the time: Director of finance at Churchill Downs Racetrack
Year of purchase: 2021
Annual income at the time: $70,000
Why buy: After finishing his undergraduate degree in Boston, Snyder moved back to Louisville in 2021 and decided to buy his primary home to start building equity.