Saving Homeownership for Gen Z
- Ivory Innovations Team
- Sep 18
- 4 min read
Updated: Oct 24
Author: Kimberly Burnett, Executive Director
The era of the disappearing starter home may be coming to an end, and not a moment too soon. If the University of Utah students in the Innovations in Affordable Housing course I’m teaching this semester are any indication, Gen Z is deeply stressed about housing affordability.
The decade-plus undersupply of housing along with COVID-era inflation in housing prices and higher interest rates mean that the same construction methods, materials, and policy and regulatory frameworks that worked for earlier generations will not work for Gen Z. Instead, the majority of Gen Z are likely to struggle to afford rent, let alone reach the American Dream of homeownership, unless we think differently.
Gen Z is not alone in struggling to afford housing. Millennials, now ages 29 to 44, are too, and it’s not because they buy avocado toast. According to the National Association of Realtors, in 2024 the median age of first-time home buyers was 38, a record. It will be a decade before Gen Z reaches this age (the oldest of the group is now 28), and it means many Millennials have waited years to buy. In comparison, during the 1980s the typical first-time home buyer was in their late 20s.
Recognizing the crisis
The good news is that we’re starting to recognize the urgency of the housing problem and do something about it. Attitudes are changing among voters, consumers, and policymakers, and Ivory Innovations-recognized innovators among others are coming up with new ideas that are gaining traction.
Housing affordability remains a priority issue among voters across the political spectrum, and policymakers of both parties are responding with support for legislation such as the ROAD to Housing Act, which passed the Senate Banking, Housing, and Urban Affairs Committee this summer with unanimous bipartisan support. The bill includes several provisions in line with Ivory Innovations’ recommendations, Unlocking Housing Innovation: Seven Federal Policy Priorities.
Rediscovering the starter home
In response to the crisis, Americans are beginning to rediscover – and redefine – the starter home. The latest round of the America at Home Study - a nationally representative survey sample of over 6,000 consumers aged 21-79 with incomes of $50,000 or more - documents that consumers are worried about the cost of housing. Forty-one percent of respondents reported it is too expensive to buy a home where they want to live, and an increasing number view housing as a financial burden.
The survey found that consumers are willing to rethink what home looks like to improve affordability. For example, 40 percent say they would accept a smaller home, 33 percent would forgo a garage, and half are open to rent-to-own models to attain homeownership.
Consumers also reported continued interest in energy efficiency – 63 percent want a home that conserves energy – which contributes to the long-term financial sustainability of housing. Among desired amenities, the top five included walkability to coffee shops and casual eateries and small neighborhood parks with seating and shade – both of which suggest a desire for more infill development.
Interest in factory-built housing is also up. The America at Home Study reports that 32 percent of respondents would consider modular or manufactured housing, up sharply from previous years.
This favorable impression of factory-built housing is especially true for Millennials and Gen Z. A Freddie Mac survey found that 78 percent and 76 percent of Millennials and Gen Z, respectively, had positive perceptions of manufactured housing.
Factory-built housing checks many of the boxes consumers now say they want, including improved affordability (with faster and less expensive construction), demonstrated resilience to natural disasters, and energy efficiency. Additionally, because factory-built homes can be deployed quickly and with limited construction disruption to neighbors, they represent an effective solution for infill locations, as
demonstrated by Ivory Prize winners like Villa (2024) and Reframe Systems (2025).
Housing policy is behind, but catching up
Housing policy, regulation, and land use in many towns and cities present major obstacles to builders’ ability to respond to consumer preferences for smaller homes, homes with no garages, and factory-built housing to improve affordability.
Some places are working to change this, paving the way for others to follow. For example, the Florida Housing Coalition won the 2025 Ivory Prize for its work on Florida’s Live Local Act, which combined zoning reforms, financing tools, preemption strategies, and permit streamlining to provide attainable housing options throughout the state.
Ivory Innovations recently worked with the Florida Housing Coalition to expand options for lower-cost housing in Florida by creating a blueprint for scaling factory-built housing in Florida. Pragmatic steps include:
Creating a unified Office of Off-Site Construction to streamline approvals and cut soft costs.
Launching pilot programs to de-risk first projects for builders and lenders.
Offering first-time buyer incentives for modular and HUD-code homes titled as real property, helping to create wealth-building opportunities.
Showcasing resilience against natural disasters, leveraging strong performance since HUD’s 1994 wind-zone standards.
Supporting ADUs built off-site to add infill supply quickly.
Modernizing public engagement to reach younger buyers through digital channels.
Developing an off-site training track at Florida colleges and universities.
Pathways to Affordability: Leveraging Factory–Built Housing in Florida. Full report embedded in image.
Over the coming months, we’ll be continuing our work on a national policy blueprint. With innovation in housing affordability, shifting consumer perceptions, and housing policy that evolves to keep up, Gen Z could have the same chance for homeownership as the rest of us.