Gen Z’s Real Estate Crisis in Developed Countries: What Are the Chances of Owning a Home?

In developed countries—from Toronto to Seoul—Gen Z is finding it increasingly difficult to become homeowners. Over the past decade, the likelihood of buying a home at a young age has dropped sharply, becoming a defining urban trend. While their parents typically owned property by their thirties, today’s younger generation often lacks the savings, income stability, or economic conditions needed to consider homeownership.

According to OECD data, real estate prices in many advanced economies have outpaced income growth by a wide margin. In the UK, for instance, the average home price in 2024 is now nine times the average annual income—compared to a 3–4 ratio in the early 1990s. Similar disparities are seen in Australia, Canada, and New Zealand. In Seoul, despite a strong culture of ownership, only 2.5% of Gen Z has independently purchased a home (KB Financial Group, 2024).

A common misconception is that Gen Z prefers flexibility, travel, and renting by choice. However, studies consistently show that this “choice” is often driven by unaffordability. In the U.S., a 2023 survey revealed that 87% of Gen Z still dreams of homeownership, but only 14% have taken any steps toward it (Zillow Group).

In Georgia, ownership has traditionally been high, with many families inheriting homes from the Soviet era. But even here, affordability is shifting. In Tbilisi, real estate prices have risen by 15–20% annually over the past three years, and access to mortgage loans remains a barrier for many younger buyers (Geostat, National Bank of Georgia).

Some countries have started to respond to these pressures. Germany offers municipally subsidized rental programs; Singapore builds public housing aimed specifically at younger adults; and Austria encourages shared ownership schemes with government co-financing. Still, demand is outpacing supply in most cases, and none of these models is flawless.

Beyond economics, the growing divide between generations—where one group holds stable property assets and the next lives indefinitely as renters—is reshaping social dynamics. With each year, it becomes more evident that for Gen Z in developed countries, homeownership is no longer the norm—it’s the exception.