How Gen Z Is Actually Affording Houses (Spoiler: It’s Not Avocado Toast)

Let’s address the elephant in the room: everyone told you that you couldn’t afford a house because you’re wasting money on lattes and avocado toast.

They lied.

The real reason you can’t afford a house is because home prices have increased 47% since 2020 while wages have crawled up by maybe 15%. It’s because the median home price in the US is now $420,000 while the median household income is $74,000. It’s because private equity firms are buying up starter homes and renting them back to you at inflated prices.

But here’s the weird thing: some people in your age group are still buying houses. Not trust-fund kids (well, not just them). Regular people who figured out the loopholes, made sacrifices, or got creative.

So how are they actually doing it? Let’s break down the real strategies Gen Z and young millennials are using to buy homes in 2025—no bullshit, no privilege denial, just the actual tactics that are working.

Strategy #1: The Bank of Mom and Dad (Let’s Be Honest)

We have to start here because it’s the most common answer, even if nobody wants to admit it.

According to recent data, nearly 45% of first-time homebuyers under 30 received financial help from family. That help looks like:

• Down payment assistance (the big one)
• Co-signing on mortgages
• Gifts for closing costs
• Living rent-free to save aggressively
• Inheriting property

The uncomfortable truth: If you have family wealth, you have an enormous advantage. A $30,000 gift for a down payment is the difference between homeownership and renting for another decade.

But before you rage-quit this article because your parents can’t help you, keep reading. The majority of young homeowners aren’t getting family money—they’re using other strategies.

If you do have family help available: Take it, and don’t feel guilty. The system is rigged against young buyers. Use every advantage you have. You can pay it forward to the next generation.

Strategy #2: Moving to “Boring” Cities (The Geographic Arbitrage Play)

The people buying homes aren’t living in Brooklyn, San Francisco, or Seattle. They’re in Pittsburgh, Cleveland, Indianapolis, and Des Moines.

Here’s the math that’s actually working:

Expensive city:

• Median home price: $850,000
• 20% down payment: $170,000
• Monthly payment: ~$5,500
• Years to save down payment at $2,000/month: 7+ years

“Boring” city:

• Median home price: $220,000
• 20% down payment: $44,000
• Monthly payment: ~$1,800
• Years to save down payment at $2,000/month: 2 years

The people cracking the code are choosing cities based on cost-of-living, not cultural cachet.

Cities where young people are actually buying:

• Pittsburgh, PA
• Cleveland, OH
• Indianapolis, IN
• Oklahoma City, OK
• Buffalo, NY
• Milwaukee, WI
• Memphis, TN
• Rochester, NY

What they’re saying: “I miss the food scene, but I own a three-bedroom house with a yard. My friends in Portland are paying $2,500 for a studio.”

The catch: You need a remote job or in-demand skills that work in any market. And yes, you’re trading proximity to cultural amenities for financial stability. Only you can decide if that’s worth it.

Strategy #3: The “House Hacking” Hustle

This is the strategy nobody taught you in school but everyone who’s building wealth is using.

What it looks like:

1. Buy a duplex, triplex, or house with a basement unit
2. Live in one unit
3. Rent out the others
4. Let tenants pay most or all of your mortgage

Real example: Marcus, 28, bought a duplex in Milwaukee for $280,000. He lives in one unit and rents the other for $1,400/month. His total mortgage payment is $1,900. His personal housing cost? $500/month.

After three years, he saved enough to buy another property, moved there, and now rents out both units of the first duplex. His tenants are building his equity.

The catch: You’re a landlord now, which means dealing with maintenance, tenant issues, and the occasional 2 AM plumbing emergency. It’s not passive income—it’s a side hustle that helps you build wealth.

How to start:

• Look for FHA loans that allow you to buy multi-family properties with as little as 3.5% down
• Target properties where rent from the other units covers at least 75% of the mortgage
• Learn basic landlord laws in your state
• Build a cash reserve for repairs

Strategy #4: Non-Traditional Down Payment Sources

That 20% down payment myth? It’s killing your dreams unnecessarily.

What’s actually available:

FHA Loans: 3.5% down payment

• Example: $250,000 house = $8,750 down
• Catch: You pay mortgage insurance, and there are loan limits

VA Loans (for veterans): 0% down payment

• Seriously, zero dollars down
• Catch: You need to have served in the military

USDA Loans (rural properties): 0% down payment

• For properties outside major metro areas
• Catch: Income limits and location restrictions

First-Time Homebuyer Programs: Often 3-5% down

• Many states have programs with down payment assistance
• Catch: Income limits and property price caps

Employer Assistance Programs: Some companies offer housing benefits

• Major employers like Amazon, Google, and others are piloting programs
• Catch: May require staying with the company for X years

What young buyers are doing: Stacking programs. FHA loan + state assistance program + employer benefits can mean you’re buying with $5,000-$10,000 out of pocket instead of $50,000.

Strategy #5: The Side Hustle Down Payment Sprint

Remember that side hustle that’s not making money? Some people actually made theirs work—specifically to save for a house.

Real examples:

Sarah, 27: Drove for DoorDash and Uber on nights and weekends for 18 months. Hated every minute. Saved $28,000. Bought a condo in Phoenix.

Jason, 29: Learned web development online, freelanced on nights and weekends while working his day job. Burned out twice. Saved $35,000 in two years. Bought a house in Indianapolis.

Maya, 26: Sold vintage clothing on Depop and Poshmark. Turned her thrifting hobby into $400-$800/month in extra income. Saved for three years. Down payment: $25,000.

The strategy:

1. Pick a hustle with fast cash flow (not building a brand, not starting a company)
2. Commit to a specific number: “I need $20,000”
3. Open a separate savings account—every dollar from the hustle goes there
4. Set an aggressive timeline: 18-24 months
5. Expect to hate your life temporarily

The reality check: This isn’t glamorous. You’re working 60-hour weeks. You have no social life. You’re exhausted. But it’s temporary, and it’s the path when you don’t have family money.

Strategy #6: Buying With Friends (The New Normal)

This sounds wild until you realize people have been doing this forever—it just wasn’t with friends, it was with romantic partners.

What it looks like:

• Two or three friends pool resources to buy a house together
• Everyone’s on the mortgage
• You create a legal agreement outlining ownership percentages and exit strategies
• You split costs and equity

Real example: Three friends in Denver couldn’t afford to buy alone (median home price: $650,000). Together, they bought a three-bedroom house for $550,000. Each contributed about $13,000 for the down payment. They each pay $1,200/month. They’re building equity instead of paying a landlord.

The catch: You need airtight legal agreements. What happens if someone wants to sell? What if someone loses their job? What if someone wants to move in a partner?

How to do it right:

• Hire a real estate attorney to draft agreements
• Create an LLC to hold the property
• Spell out every scenario: job loss, relationship changes, wanting to sell, etc.
• Choose friends you trust with money (not just friends you like to party with)

Strategy #7: The “Fixer-Upper” Gamble

Some young buyers are going for properties that nobody else wants and using sweat equity to build value.

What they’re buying:

• Houses that need cosmetic work (not structural)
• Properties in up-and-coming neighborhoods
• Foreclosures and short sales
• Homes that have been sitting on the market

The strategy:

• Buy below market value
• Do renovations yourself (YouTube University)
• Increase the home’s value
• Refinance or sell in 2-3 years

Real example: Tom and Lisa, both 30, bought a “ugly” house in a decent Detroit neighborhood for $95,000. They spent $20,000 and hundreds of hours doing cosmetic renovations. Two years later, it appraised for $180,000. They refinanced and pulled out equity for their next investment.

The catch: This requires time, skills (or the willingness to learn), and tolerance for living in construction chaos. And if you’re not handy, contractor costs can destroy your budget.

Strategy #8: Waiting for Market Corrections (The Patient Play)

Some people are buying now. Others are playing the long game.

The contrarian strategy:

• Rent cheaply (roommates, living with parents)
• Save aggressively (50%+ of income if possible)
• Wait for market corrections, recessions, or increased inventory
• Strike when prices dip and competition decreases

Why this might work: Housing markets are cyclical. The insane growth since 2020 isn’t sustainable forever. Higher interest rates are already cooling demand in many markets.

The risk: You might wait years. The market might not crash. Rents might keep increasing. You might end up kicking yourself for not buying in 2025 when you had the chance.

If you’re playing this game: Make sure you’re actually saving, not just procrastinating. Set a target number and work toward it whether you buy now or in three years.

The Real Talk Nobody Wants to Have

Let’s be brutally honest about what buying a house young actually requires in 2025:

You probably need to:

• Make significant lifestyle sacrifices (no vacations, no eating out, no new clothes)
• Work multiple income streams (side hustles, overtime, whatever it takes)
• Move somewhere you wouldn’t have chosen (bye, dream city)
• Compromise on the house (it’s small, it’s ugly, it’s far from downtown)
• Have some privilege or luck (family help, good timing, the right skills)

Or alternatively:

• Accept that renting isn’t failure—it’s the reality of the current market
• Build wealth other ways (investments, business, career growth)
• Wait for policy changes or market corrections

There’s no shame in either path.

What’s Actually Working: The Common Threads

After researching dozens of young homeowners, here are the patterns:

1. They were specific about their goal: Not “someday own a home” but “$25,000 in 18 months”
2. They made major tradeoffs: Moving cities, living with roommates, working multiple jobs
3. They educated themselves: Learned about loans, markets, real estate investing
4. They were flexible: Changed their criteria based on reality, not fantasy
5. They had urgency: Treated it like a mission, not a vague hope

The Bottom Line

The system is broken. Home prices shouldn’t be this high relative to incomes. You shouldn’t need to work 70 hours a week or move to a city you’ve never heard of just to own a basic house.

But while we wait for policy solutions that may never come, some people are finding ways to make it work—not through avocado toast abstinence, but through strategic tradeoffs, creative financing, and sheer determination.

You might buy a house by:

• Moving somewhere cheaper
• House hacking a duplex
• Partnering with friends
• Using low-down-payment loans
• Side hustling your face off for two years

Or you might decide homeownership isn’t worth the sacrifices right now—and that’s valid too.

Either way, ignore anyone who tells you it’s about lattes. The game is rigged, but some people are still finding ways to play—and win.