Gen Z Thinks WWIII Is More Likely Than Being Able To Afford A Home In The Next 5 Years

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A growing number of young Americans have written off the idea of buying a home anytime soon, and some think a global war will break out before they ever get the chance.

A new survey from Clever Real Estate found that 21% of Gen Z respondents believe World War III is more likely to happen in the next five years than them buying a home. Nearly the same share think they're more likely to win the lottery or become homeless in that same timeframe.

It's a dramatic comparison, but it shows just how far out of reach homeownership feels for many young adults, even as most still dream about it. 90% of Gen Z say they want to own a home someday, but 62% percent fear they never will.

From Dreams to Desperation

Two-thirds of Gen Z say they're more concerned about housing security now than they were a year ago. Nearly a third have even considered squatting or living in their car.

Affordability is the biggest barrier. Among those who doubt they'll ever own a home, 82% cite high prices — a sharp jump from 57% in 2024. Three out of four say the high cost of living has made saving for a down payment impossible, and nearly half think it's pointless to even try saving.

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For some, the desperation shows in the compromises they're willing to make. Nearly half would buy a home with asbestos, 41% would tolerate pests, and over a third would accept a home with mold. More than half would even accept a mortgage rate higher than 7%.

Don't Miss: See how an investment in home equity could outperform stocks in today's market. Discover the strategy used by institutional investors that delivers double-digitt returns with built-in downside protection.

High Prices, High Rates, and No Relief in Sight

The numbers paint a grim picture, but the frustration isn't without reason. Home prices remain near record highs in many parts of the country. Mortgage rates, while off their peak, are still more than double what buyers paid just a few years ago. Wages haven't kept pace, making it harder for younger buyers to compete.

Even those with stable, well-paying jobs face challenges. Rising insurance premiums, property taxes and maintenance costs make ownership more expensive than ever. And with geopolitical tensions simmering, the comparison to a global conflict starts to make a little more sense, at least in the minds of those feeling locked out.

How to Benefit From Today's Housing Market

While Gen Z's pessimism about ownership is clear, the survey highlights something else: the strength of the housing market. For investors, that strength is an opportunity.

Story Continues

Residential real estate has continued to appreciate over the long term, even through periods of economic uncertainty. That's why institutional players have been expanding into alternative ways to participate in housing and why some individual investors are doing the same.

One example is the U.S. Home Equity Fund from Homeshares. Instead of buying and managing rental properties, the fund invests in Home Equity Agreements (HEAs), giving it a share of future appreciation on owner-occupied residential properties across the country. The structure provides significant downside protection, diversification and access to a nearly $35 trillion market that's historically been out of reach for most individuals. The fund targets a 14% to 17% net IRR, aiming to capture the upside of home price growth while managing risk.

For those who believe in the long-term resilience of the U.S. housing market, it's a way to benefit from continued appreciation without the challenges of direct ownership. Learn more about the U.S. Home Equity Fund here.

A Shift in the American Dream

The idea that owning a home is the cornerstone of the American Dream has been ingrained for generations. But if a significant share of young adults truly believe global war or a lottery win is more likely than a home purchase, the dream is evolving.

For some, that may mean waiting for the market to shift in their favor. For others, it means finding new ways to participate in one of the most enduring wealth-building markets in history.

The question now is whether the next generation will redefine the dream of homeownership, or simply find smarter ways to profit from it.

Read Next: Wall Street has been quietly buying up equity in owner-occupied homes, and the strategy is kind of genius. Here's how one company is using it to produce 15%+ annual returns for its investors.

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This article Gen Z Thinks WWIII Is More Likely Than Being Able To Afford A Home In The Next 5 Years originally appeared on Benzinga.com

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