Gen Z homebuyers struggle in Portland's pricey market
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More Gen Zers are looking to break into the home market — but Portland stands in contrast, alongside its West Coast neighbors, with a lower share compared with the national average, new data shows.
Why it matters: High housing costs and a supply crunch have made it harder, especially for younger people, to become homeowners, even as Gen Zers are expected to make up a bigger piece of the homebuying pie as they get older.
The big picture: Gen Z represented 13% of U.S. home mortgage applications in 2024 — up from 10% in 2023 — per an analysis by CoreLogic, which analyzed mortgage applications — accepted or not — and excluded investors, second-home buyers and cash buyers.
- In the Portland metro, where the median home price is $526,000, Gen Z homebuyers represented an estimated 8.8% of mortgage applications.
Zoom in: While there's "definitely a lot of interest" in the market among young homebuyers, price point remains a big barrier, Christina Wolken, a broker at Urban Nest Realty, told Axios.
- Many are looking for single-family residences under $400,000 "but are very willing to compromise and get a condo or townhome as their first home with the intention of building equity to move up down the road."
Plus: Portland-area Gen Zers also have to make compromises on amenities and location.
- Young buyers "have an affinity" for preserved craftsmanship-style homes with enclosed yards that are in walkable neighborhoods close to coffee shops and restaurants, which is "usually out of reach price-wise," Wolken said.
Reality check: Many who take the plunge get help from Mom and Dad.
- Younger generations are increasingly banking on family money for down payments, Redfin research shows.
- Yes, but: Portland offers some loan programs for first-time homebuyers with low to moderate incomes.
Stunning stat: You need to make $152,000 a year to afford the mortgage on a median-price home here.
The bottom line: One thing Gen Z homebuyers are doing is taking their time in navigating the homebuying process. "I definitely think younger buyers are more skeptical of just about every part," Wolken said.
- "They're doing lots of research online before even talking to an agent, and interviewing multiple lenders before making a decision to work together."