Survey: 91% of Gen Z Has Homebuying Doubts. Most Young Homeowners Underestimated the Costs

The next generation of homeowners is hesitant to take the plunge, and new survey data backs up some of their concerns.

Although the majority of Gen Z wants to own a home someday, many doubt their ability to afford one — and their ability to pick one that won’t come with unexpected problems, like structural defects or high home insurance rates. 

Gen Zers who have already purchased a home confirm some of those suspicions, according to an Insurify survey of 1,002 Americans ages 22 to 28. Nearly 90% of Gen Z homeowners say they underestimated how expensive certain costs of owning a home were. 

“Homeownership has its perks, but buying a home without budgeting for additional upkeep costs — property taxes, home insurance, and others — can lead to regrets down the line,” said Mallory Mooney, director of sales and service at Insurify.

Meanwhile, those looking to buy their first home are waiting things out. Only about 5% of Gen Zers who don’t already own a home plan to buy this year, down from 8% in 2024, according to the survey.

Student loans, high living costs, and doubts about the economy help explain some of the hesitancy. Three in five Gen Zers (59%) believe the cost of living will be higher one year from now. And 23% have delayed homebuying plans in case of an economic downturn, another Insurify survey found.

Among aspiring Gen Z homeowners with student loans, 70% said their student debt has slowed or stopped their homebuying plans. 

The broad lack of home affordability comes with downstream risks, like steering potential homebuyers toward cheaper areas that face expensive weather-related disasters.

Insurify’s findings help highlight what’s holding Gen Z back from homeownership — and the challenges that their counterparts who already own homes are up against.

Key findings

• Nearly one-quarter of Gen Zers (24%) say they’ll never be able to afford a home — up from 18% in 2024. Only about 8% of Gen Zers who don’t already own a home could afford a 10% down payment on a median-priced home today.

• Gen Z’s most common homebuying worries are discovering expensive hidden problems (47%) and losing their income (41%). More than one-third (36%) are worried about the cost of insuring their home.

• Three-quarters of Gen Zers would make some sacrifices to get a good deal on a home, including buying a fixer-upper (37%) and buying a home in an area with extreme weather (33%).

• Certain homebuying and homeowning costs surprised 89% of Gen Z homeowners. About 37% said property taxes were more expensive than expected, making it the most common answer choice, followed by home insurance costs (35%). A further 34% cited closing costs, and 32% cited mortgage interest.

74% of Gen Z plans to buy a home eventually, but only 8% could afford the typical down payment today

Gen Z isn’t afraid to reject some social norms, but homeownership isn’t on the chopping block just yet. Most young adults still see the purchase as a milestone. 

Among those who aren’t already homeowners, 74% have plans to buy a home someday, including 40% who want to buy in the next three years. That figure climbs to 47% for aspiring homebuyers in the South, where property values are generally cheaper, and falls to 34% in the West, where homes tend to be more expensive.

But the number of aspiring buyers fell 5% since 2024, when 79% said they planned to buy a home someday. A lack of savings and stubborn home prices are likely causing some in Gen Z to re-evaluate whether homeownership is realistic.

Getting discouraged by high home prices isn’t unique to Gen Z, but it’s increasingly common. About one-quarter of non-homeowners surveyed (24%) said they think they’ll never be able to afford a home — up from 18% last year — including 31% of those who make less than $50,000.

The median home price is about $414,000, so a 10% down payment would amount to more than $40,000.^[1] But Insurify’s survey shows that only 8% of Gen Zers who don’t already own a home have $40,000 for a down payment. 

Of those who plan to buy in the next three years, only 13% have at least $40,000 saved for a down payment, and most (52%) have less than $10,000 saved for a down payment.

Even with the FHA minimum down payment of 3.5% on the typical home, only about 22% to 35% of Gen Z non-homeowners have enough saved to cover a down payment of about $15,000.

Pessimism about the economy may also be persuading potential buyers to hold off. An Insurify survey from May found that 56% of Gen Z said the U.S. is in a recession, and 23% have delayed homebuying due to the possibility of a downturn.

Student loans are yet another obstacle for aspiring buyers in Gen Z, more than half of whom owe money toward student debt (54%). Of that group, 70% said their loans have negatively affected their homebuying plans, including 29% who said they’ll only be able to afford a home if their loans are forgiven.

Gen Z’s most common homebuying fears — 47% worry they’ll uncover costly issues after buying

Beyond the initial hurdles of saving for a home, many in Gen Z worry that if they buy, they could end up with various versions of buyer’s remorse. Among Gen Zers who don’t already own a home, 91% are anxious about at least one aspect of becoming a homeowner.

Just under half (47%) say they worry about discovering major defects in a home after buying, such as issues with the foundation or roof. Another 41% worry they might lose their source of income after buying, and 40% are afraid to find out they paid much more than they should’ve.

Other common concerns include feeling stuck due to the financial commitment of homeownership (38%), buying at the wrong time (37%), and the cost of insuring the home (36%).

Insurance costs are nothing to brush off. A scarcity of affordable homes could cause some young buyers to commit to areas that have high risks of extreme weather and expensive insurance premiums. A recent Cotality report noted that the metro areas with the highest share of Gen Z mortgage applicants are in regions with severe hail and storms, which can cause structural damage and raise home insurance costs.^[2] The two metro areas with the highest share of Gen Z mortgage applicants are in Iowa, which Insurify projects will have the third-fastest rising home insurance costs in 2025.

For a good deal, 37% of Gen Z would buy a fixer-upper, and 33% would buy a home in an area with extreme weather

A bargain price could persuade Gen Z to buy a home with noticeable problems. The most common compromise they would make for a good deal is buying a fixer-upper (37%), and 34% would buy a home far from friends or family.

About 33% would buy a home with exposure to some form of severe weather. Individually, the most common weather-related buying risks they’d take are buying in areas prone to hail (15%), severe winds/tornadoes (10%), wildfires (9%), flooding (9%), and hurricanes (8%).

Aspiring buyers may be more comfortable with types of severe weather they’re familiar with. Respondents in the South were the most likely to say they’d buy a home in an area prone to hurricanes for a good deal. Respondents in the West were most likely to say they’d buy a home in a wildfire-prone area for a good deal.

Homeowners who buy in states vulnerable to severe weather often pay significantly higher home insurance premiums. The typical homeowners in Florida and Louisiana pay more than $10,000 in premiums each year, more than three times the national average ($3,259).

In total, about three-quarters of Gen Zers who don’t own a home would make one of the sacrifices listed to buy a home. That willingness to compromise suggests that some in Gen Z are deeply motivated to achieve homeownership.

The most common reasons for wanting to buy a home were to start or support a family (25%) and the freedom to customize their home (22%). In the 2024 survey, the top choices were to start or support a family (31%), and to build generational wealth (22%).

This year, Gen Zers with higher incomes were more likely to say they want a home to build equity or stabilize housing costs compared to lower-income Gen Zers, who were more likely to put weight on starting a family or the freedom to customize. The survey showed some regional variation as well, with those in the South more likely to say they want a home to start or support a family compared to those in the Northeast (29% vs. 20%).

Gen Z homeowners underestimated the cost of property taxes and home insurance

The experiences of Gen Z homeowners validate some of the fears that aspiring homebuyers express. More than one in three Gen Z homeowners (35%) regret buying their home at least sometimes, and 16% said they regret buying their home often or always.

Unexpected costs are a common theme. Nearly nine in 10 Gen Z homeowners (89%) said they were surprised by how expensive certain costs were during or after the buying process. For many homeowners, property taxes (40%) and home insurance (35%) took precedence over other notable expenses, such as closing costs and the home’s purchase price.

Home insurance costs were the most popular answer (40%) among Gen Z homeowners in the South, an area that faces high losses from hurricanes. Midwest homeowners found the expense of closing costs most surprising, while Western and Northeastern homeowners were most likely to be surprised by property taxes.

Concerns about home insurance premiums, which are up nationally by 30% since 2021, are nothing new. Another recent Insurify survey found that 37% of Americans with home insurance said it’s unaffordable.

Home insurance can protect homeowners financially from some, but not all, natural disasters and severe weather. Nearly nine in 10 Gen Z homeowners (89%) are concerned about some form of severe weather risks to their homes. The most common are wind damage (41%), flooding (39%), fires (34%), and hurricanes (25%).

Homeowners in different regions have varying levels of concern about severe weather. Homeowners in the West are most fixated on fires (47%) and wind (47%). Those in the South are mainly concerned about hurricanes (41%) and flooding (40%).

Tips: How Gen Z can manage homeownership costs — and anxieties

Homeownership has its upsides — more freedom, additional living space, and the benefits of building equity and home value appreciation. It can also become a burden without sufficient due diligence. Smart homeowners can take steps to protect their property and minimize regrets while taking advantage of opportunities to save.

The best time to start is early in the buying process, with emphasis on the home’s location. A home may have a cheap purchase price but be vulnerable to flooding or have expensive local property taxes. Homebuying sites like Zillow include information about a property’s tax history, while the National Risk Index offers map data to illustrate which weather-related risks an area tends to experience.^[3] 

"In our part of Florida, homeowners can’t afford to ignore flood risks," said Sidney Newfield, a real estate agent based in St. Petersburg, Florida. "It’s crucial that buyers weigh the pros and cons before buying in an area that gets inundated with rising water every time we get heavy rains or a tropical storm."

Once they’ve decided on a home, potential buyers should also ask the seller about repair history and home insurance claims.

Before closing, about 80% of buyers arrange for a home inspection.^[4] Some sellers may offer an enticing discount to waive the home inspection, but doing so could backfire on the buyer, leaving them unaware of major defects.

Current homeowners can also take steps to safeguard against financial headaches, especially when evaluating their home insurance. Owners need to make sure they have adequate dwelling coverage to cover the cost to rebuild their home in the event of a disaster. A 2024 Colorado study found that most homeowners don’t have enough coverage to rebuild after a total loss, as some policyholders interpret the lower cost that comes from underinsuring to be the same as a lower premium.^[5]

Homeowners can keep premiums low without compromising on coverage. Insurance-comparison websites allow users to enter their policy information and get a list of quotes from different insurance companies, which helps homeowners take advantage of more transparent pricing.

If a homeowner is reluctant to switch insurers but still wants to save, they can check if their home insurance company offers discounts for weather-proofing the property. In California, for example, insurers have to provide discounts for homeowners who take steps to mitigate potential fire damage.^[6] Florida requires insurers to offer discounts for wind mitigation following an inspection.

Methodology

The proprietary data featured in this study comes from an online survey that Insurify commissioned. The survey respondents consisted of 1,002 U.S. residents between 22 and 28 years old. Respondents were asked up to 20 questions about their views on homebuying and homeownership, among other topics. The survey fieldwork took place from June 4 to June 5, 2025. This article also contains findings from a previous survey of 1,001 U.S. residents between 22 and 70 years old who own or lease a car, conducted from May 2 to May 7, 2025.

For media inquiries or questions about our study, please contact the author here.