The 2025 ServiceLink State of Homebuying Report (SOHBR), which is now in its fifth year, was published today and found that although Gen Z is still eager and prepared to purchase a home this year, high mortgage rates and home prices may discourage them from doing so.
Compared to 51% of millennials, 49% of Gen X, and 22% of baby boomers, 67% of Gen Z respondents stated they intended to buy a home this year.

However, Gen Z also topped all respondents in terms of their readiness to give up in the face of challenging purchasing circumstances, with 58% reporting that they gave up on the home-buying process in 2024 and 38% stating that they had failed to make a purchase within the previous four years.

The yearly poll conducted by ServiceLink examines generational patterns among current and potential homebuyers, as well as their intentions to buy, refinance, or use home equity this year.

According to Dave Steinmetz, president of origination services at ServiceLink, "these findings show that despite the ups and downs of today's market, there is still a strong appetite for homeownership, particularly among the youngest generation." In order to fulfill their dream of becoming homeowners, today's buyers must be well-informed, patient, and adaptable. This gives lenders a chance to leverage technology and expand the offerings that purchasers have shown a desire to see. In order to satisfy the demands of today's buyers, lenders should also concentrate on education and enhancing transparency.

41% of all respondents stated that they think the circumstances are ideal for purchasing a home this year, notwithstanding Gen Z's declining tolerance for the difficulties associated with home ownership. Among Gen Z, 52% had a positive outlook on the market, compared to only 23% of baby boomers.

According to ServiceLink, buyers are becoming less inclined to purchase with high mortgage rates this year. The average mortgage rate, according to Gen Z respondents, is 5.1%, and they would think about raising it to 5.8%, which is lower than the 6.3% rate from the previous year.

With their ceiling falling from 6.2% in 2024 to 5.5% now, millennials are likewise growing less receptive to rising rates. Millennials are, however, reversing their intentions to buy a home; only 51% of them still intend to do so in 2025, compared to 59% in 2024 and 61% in 2023. Just 46% of millennials stated that the market would be favorable for purchases in 2025, a decline from 60% in 2023.

But according to Gen X survey results, there will be a resurgence of interest in home ownership in 2025. Compared to 45% in 2024, 25% in 2023, and 12% in 2022, 49% of Gen X respondents stated they intended to purchase this year.

Technology and Space Are In High Demand

39% of respondents stated they would like to see greater physical space between homes, and 60% of respondents who expect to buy a home within the next year stated they are looking for a home with more space—a 17% increase from a year ago.

Small home size was also mentioned by more than half (51%) of respondents as a deal breaker. Higher taxes (48%), a lack of privacy or too close-together residences (43%), and a lack of outdoor space (33%), are other major deal-breakers.

As they negotiate the home-buying process, the respondents also expect their lenders to be tech-savvy. According to 59% of respondents, the convenience and ease of use of mortgage technology are its greatest advantages. Of those surveyed, 51% said they like the time savings it offers, and 45% prefer the flexibility it gives them to go at their own pace.

eSigning technology was mentioned by a large percentage of respondents (62%) as something they used at home. 70% of baby boomers used eSigning, compared to 42% of Gen Z respondents.

Are you a Gen Z homebuyer and looking at the Cincinnati OH market? Talk with the Hersey Group so they can lead you on your home journey.