Harrison Conn and his fiancée, Jenna Borresen, 28, rent a one-bedroom apartment for $2,400 dollars a month on Long Island. Despite a dual-income of about $190,000, monthly bills and wedding planning are taking priority over any plans to buy a home in the next couple of years, due to high mortgage rates and inventory levels.
As they navigate their finances, they question if home ownership is in their reach compared to 30 or 40 years ago. They recognize salaries have doubled since then— but the cost of living or time to save is not keeping up. The burden of student loans due to a career change and shifting policies adds a level of uncertainty to their place in the market.
Credit: Harrison Conn
Unlike previous generations who saw homeownership as a stable investment, young adults like Borresen and Conn face an increasingly uncertain housing market, which is now exacerbated due to uncertainty in policy decisions surrounding tariffs and immigration. With rising costs, limited inventory, and policy uncertainty, younger buyers are facing an uphill battle.
Yet, despite warnings from economists, some remain hopeful that Donald Trump will give them a place in the market.
“We are very optimistic people,” Conn said. “We are hoping that Trump’s plan to cut the cost of these ‘regulatory requirements’ makes purchasing a home more affordable.”
Despite their optimism, a Reuters/Ipsos survey found three in five Americans cited the cost of living is headed in the wrong direction, with economists warning that new tariff policies are an extra headwind for first time buyers.
For example, Trump’s threatened an additional 25% tariff on Canadian lumber– which is expected to increase construction costs. Back on the campaign trail, Trump cited mass deportation as a tactic for lowering housing costs, but experts remain skeptical about its impact.
Adding to the uncertainty, consumer sentiment among buyers is also decreasing. The latest measure of the Consumer Sentiment Index hit its lowest level since March 2022, due to concerns about inflation and tariffs.
“People are just not sure what’s going to come next,” said Lance Freeman, a professor of city and regional planning and sociology at the University of Pennsylvania.
With rising home prices and high mortgage rates, the median age of homebuyer hit a record 56 years old in 2024, up from 45 in 2021. In 1981, the median age of homebuyers was 31. Adding to the gap, older generations are staying put in their homes longer. Despite being 20% of the population, baby boomers own 40% of all homes. The average homeowner tenure has risen from 6.5 years in 2005 to 11.8 years in 2024, dismantling the path for younger buyers to enter the market.
“That barrier for buyers entering the market is just going to get higher,” said Hannah Jones, senior economic research analyst at Realtor.com.
In Philadelphia, John McAchran, 54, has no plans to sell his newly purchased home, unless experiencing a drastic job change. Before moving in, McAchran sold his previous home when the housing market was at its peak in 2022 for a 60% profit. In three years, his home’s value increased from $750,000 to $1.3 million. With the extra profit, McAchran paid off other debts and invested in the stock market.
McAchran sees the contrast firsthand. His 26-year-old son is still renting, and he believes today’s younger generations face a much steeper climb. He says expectations are generally negative, and with good reason, as the deck is stacked against younger people more so than those who benefited from less challenging situations.
“Whether you agree with the policies or not, institutional dismantling is happening. And if you’re a young person, that’s the world you’re about to inherit,” said Kyla Scanlon, author of ‘In This Economy: How Money and Markets Really Work.’
Beyond just policy, resistance to new housing developments is squeezing supply for younger generations.
“Even if the financial conditions do loosen up and it becomes easier to buy a house, there’s not enough homes for people to buy in a lot of areas,” Scanlon added.
Experts warn that major milestones such as marriage, having children and completing education are also contributing to delayed homeownership.
“They’re reaching these ‘adult milestones’ at older ages than previous generations,” Freeman added.
Scanlon added younger generations aren’t just facing a tough housing market—they’re inheriting an economy shaped by unprecedented uncertainty. The rise of AI, shifting labor markets, and large-scale institutional changes, whether through policy or broader economic shifts, have made the traditional path to wealth accumulation less predictable.
“It’s frustrating that 40 years ago, people were able to purchase property and begin building a family, while in our current projected path, we are hoping to at least make a dent in our mandatory payments related to student loans, car payments, by the time we hit 30,” Conn said.
Though many feel discouraged to enter the market, some younger generations are split on whether more drastic political shifts could improve their prospects. According to a Realtor.com survey, male respondents and Gen Z cited the most positive associations with the outcome of the election as it pertains to housing. A separate Consumer Affairs report found that 39% of voters believe mortgage rates will improve under Trump, while a smaller percentage think rates will rise.
Harrison and Jenna both recognize policy shifts in the coming months could reshape their financial future. Trump’s promises to roll back regulations and proposed tariffs on conduction materials and immigration crackdowns could complicate efforts to bring down prices. Still, they remain hopeful.
“We don’t really have a choice in whether these rates improve or not. We can just hope that within the next 3 years we can purchase a home and grow a family and inevitably turn that long term goal into a short one,” Conn added.