79% of Millennials Say They Can't Afford Homes, with 41% Willing to Buy a House with Asbestos or Pests

Just 32% of millennials have at least the $80,000 needed for a 20% down payment on a $400,000 home.

ST. LOUIS, Jan. 14, 2025 /PRNewswire/ -- Just 21% of millennials believe their generation can afford homes, a sharp decline from the 52% who felt the same in 2024, according to new research from Real Estate Witch, an online publication owned by Clever Real Estate that connects readers with expert real estate advice.

The median U.S. home price hovers around $420,000, but 68% of 2025 millennial home buyers plan to purchase a home that costs less than $400,000. In comparison, just 57% of millennials planned to spend less than $400,000 in 2024.

96% of millennial home buyers have concerns about purchasing a home, with 44% worried about finding an affordable home — up from 35% in 2024.

Nearly all millennials (97%) face barriers to homeownership, with financial challenges topping the list: 52% cite high home prices, 48% point to high interest rates, and 44% struggle to save for a down payment.

As a result, nearly half of millennials (41%) would buy a home with asbestos or pests, such as mice, cockroaches, and spiders, while 57% would make an offer on a fixer-upper.

Surprisingly, more millennials would prefer buying near a cemetery (34%) or railroad track (26%) than near their ex (25%), while 60% wouldn't consider a home near their in-laws.

About 74% of millennials believe high interest rates make now a bad time to buy a home, but 76% say they would be enticed to buy if rates fall in 2025.

Over half (56%) would offer over asking price, though that figure has dropped from 79% in 2024.

67% of millennials regret not buying a home when prices were lower, and 32% expect to max out their budgets in 2025.

Nearly half of millennials (45%) think their generation faces the greatest challenges in affording homes, with 33% blaming boomers for being most responsible for the affordable housing crisis.

Read the full report at: https://www.realestatewitch.com/2025-millennial-home-buyer-report

About Real Estate Witch
Real Estate Witch is a web property of Clever Real Estate, an online platform that connects home buyers and sellers with top-rated agents at a discounted rate.

Clever Real Estate is a technology company that produces educational real estate content reaching over 10 million readers annually, and its nationwide agent matching service has a 5.0-star Trustpilot rating across 3,300+ customer reviews. Since launching in 2017, Clever has reached $12 billion in real estate sold, matched 146,000+ customers with realtors, and saved consumers over $180 million on commission fees. Clever's network spans 15,000 agents across all 50 states.

Please contact Alyssa Evans at [email protected] with any questions or to arrange an interview.

CONTACT:
Alyssa Evans
Clever Real Estate
[email protected] 
315-690-1518

SOURCE Real Estate Witch