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But is that really the case?
How Did We Got Here?
Many existing homeowners who would have traded up into larger or nicer homes are locked into low mortgage rates.
That means there are fewer starter homes available, driving up prices, she said.
Additionally, investors and second homebuyers have entered the market, further driving up prices.
That pushed prices even higher.
Will It Change?
Things that go up, come back down, right?
Well, when it comes to housing, gravity doesnt necessarily apply.
He said that prices likely wont drop dramatically until more homes are built orbroader affordability programsare put in place.
There is hope, however.
Its possible that mortgage rates may come down a bit next year.
What Can the Average Millennial or Gen Zer Do?
First, dont give up hope.
There are strategies that younger buyers are employing to buy their first homes.
Thats already how 17% of buyers are trying to save on expenses, said Morgado.
Another similar trend is friends buying homes together.
He also advised flexibility.
That, combined with saving aggressively and other alternative tactics, could make the difference.
Prices go up, and then up some more.
And we are living in an era when prices went up dramatically.
Just two years later, in Q2 of 2024, it was $437,700.
Thats our new reality.
So, the old rules of buying a first home might not work.
The good news is, the new generation is known for breaking the rules.
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