The New NextGen Homebuyer Report Explains Millennial & Gen Z Hesitation Around Homebuying
If you’re a Millennial or Gen Z renter holding off on looking into your home-buying options, a new national study sheds light on what may be holding you back. Our Asheville-based mortgage lenders break it down below, and explain why meeting with a lender may reveal that home ownership is closer within reach than you expect.
The 2026 NextGen Homebuyer Report Findings
The 2026 NextGen Homebuyer Report surveyed 1,000 Americans ages 18–44 about their attitudes toward homeownership, their financial readiness, and their trust in the professionals guiding them through the process. Now in its sixth year, this research has gathered insights from more than 9,000 respondents since 2020, making it one of the most comprehensive looks at how younger generations think about buying a home.
The findings are eye-opening—and for those of us who work with first-time homebuyers here in Western North Carolina, they reinforce what we see every day: the barriers to homeownership are less about capability and more about misinformation, overwhelm, and a system that doesn’t always feel like it’s on your side.
The Dream is Alive, But Confidence Has Taken a Hit
Homeownership still matters deeply to this generation. Eight in ten respondents said owning a home is essential to “making it” in life, and half named homeownership as a core part of their American Dream.
But there’s a shift in why people want to buy. Stability and security now outrank wealth-building as the top reason to pursue homeownership; 60 percent cited stability as their primary motivation, compared to just 40 percent who mentioned building long-term equity.
At the same time, confidence in homeownership as a smart financial move has dropped dramatically. In 2021, 88 percent of respondents believed buying a home was a good investment. By 2026, that number fell to just 41 percent.
The barriers to homeownership are less about capability and more about misinformation, overwhelm, and a system that doesn’t always feel like it’s on your side.
Three-quarters of respondents believe homeownership is harder today than it was for their parents’ generation, and among non-owners who say buying isn’t a priority right now, nearly three in four point directly to affordability as the reason.
The aspiration hasn’t faded. But the path feels harder, and the payoff feels less certain.
The 20 Percent Down Payment Myth Persists
One of the most striking, consistent findings across six years of this research is how many people believe they need 20 percent down to buy a home. In 2026, only 8 percent of respondents correctly identified the minimum down payment required, and half still believe 20 percent is the threshold.
This myth persists equally among current homeowners and non-owners, meaning that even going through the buying process doesn’t always correct it.
In reality, conventional loans can require as little as 3 percent down. FHA loans allow qualified buyers to purchase with just 3.5 percent. And for eligible veterans or buyers in qualifying rural areas, VA loans and USDA loans offer zero-down options.
The real-world impact of this myth is far-reaching. For example, when someone believes they need $60,000 to buy a $300,000 home, they may delay for years (or give up entirely).
Mortgage Insurance for Down Payments Below 20%
The report also found that only one in four respondents understand what mortgage insurance does, which means many potential buyers don’t realize that lower down payments are possible specifically because mortgage insurance exists to bridge the gap.
Trust is the Primary Barrier
Perhaps the most important section of this year’s report focuses on trust. Nearly two-thirds of respondents believe housing professionals have the knowledge to provide good advice, but only 37 percent believe those same professionals will actually put the client’s interests first. And just one in eight said they’re confident they won’t be taken advantage of during the homebuying process.
Respondents worried about being pressured into decisions they don’t fully understand, not being told about better options, and working with professionals whose financial incentives don’t align with the buyer’s best interest.
There is an encouraging finding buried in this data: experience nearly doubles trust. Among non-owners, only 25 percent believe a professional would recommend what’s best for them even if it meant earning less. After buying a home, that number jumps to 48 percent. A positive experience can shift someone’s perception of the entire industry.
Overwhelm Leads to Avoidance
When buyers don’t trust the system, they try to figure things out on their own. And that often backfires.
Sixty-three percent of respondents said they feel overwhelmed by the volume of homebuying information available. Forty-two percent admitted they’ve put off talking to a professional because the process feels too daunting. And 37 percent said they avoid thinking about homebuying entirely simply because the process feels paralyzing.
The report’s authors put it plainly: these are not disengaged buyers. They are paralyzed ones.
Read the Full 2026 NextGen Homebuyer Report »
First-Time Buyers in Western North Carolina: What This Means for You
Buying a home should feel like a partnership, not a sales pitch. Our team works with first-time homebuyers in Asheville, Hendersonville, Brevard, Weaverville, Black Mountain and Cashiers and the surrounding communities, and this research underscores our belief that education and trust are foundational in our industry.
If you’ve been putting off the homebuying conversation because it feels overwhelming, or because you’re not sure who to trust, we’re here whenever you’re ready to take that first step! Whether that’s a quick question about down payment options, an application for pre-approval, or just a conversation about what homeownership might look like for you, we welcome you to call, click, or come in.
Call us at (828) 348-1907, visit our West Asheville office at 862 Haywood Rd, Asheville, NC 28806, or reach out through our website to connect with Zachery Adam and our team.
