Gen Z homebuyers most keen to chop prices to afford a house

New shopper report reveals youthful patrons are adapting their spending habits as affordability pressures mount.

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IRVINE, Calif., September 23, 2026 – Gen Z homebuyers are extra keen than different generations to chop again on life-style spending to assist afford a house, based on analysis from Cotality, a number one international property data, analytics, and data-enabled options supplier. 

Cotality’s new Consumer Sentiment Report reveals a big shift in buying conduct throughout the US, Canada, UK, Australia and New Zealand – primarily pushed by affordability considerations. 

‍Gen Z emerges as most adaptable technology

Cotality discovered that Gen Z patrons are most keen to chop life-style spending at 78% (Millennials are equally keen at 77%), in contrast with 69% of Gen X and 50% of Baby Boomers. 74% of Gen Z respondents say they’d take a smaller dwelling in contrast with 64% of Millenials, 57% of Gen X and 43% of Boomers. 

“Gen Z patrons have grown up in an atmosphere of elevated housing prices, so that they’re coming into the market with totally different expectations,” mentioned Selma Hepp, Chief Economist at Cotality.  “They’re more willing to adjust their budgets, reduce discretionary spending, or consider a smaller home if it means achieving homeownership sooner. That flexibility helps explain why they’re the generation most prepared to move forward despite affordability challenges.” 

‍Affordability pressures are forcing buyers to compromise

Sixty-five percent of all respondents say they would seek a smaller mortgage to improve affordability, and more than half would refinance into a smaller loan or buy a less expensive property (57% and 59%, respectively). 69% say they have already cut, or plan to cut, discretionary spending – on shopping, travel and eating out – in pursuit of homeownership.

“Expectations set by Covid-era interest rates have stagnated the market and sidelined millions of would-be homeowners. By playing the waiting game, people eliminate one of the primary paths to wealth building and limit their ability to build financial reserves in an economy weighted down by increasing unaffordability,” mentioned Hepp.

“At first glance, renting at $2,000 per month looks cheaper than buying with a $300,000 mortgage,” Hepp continued. “But once you account for principal paydown and the federal tax benefit, ownership becomes roughly cost-neutral at a 6.6% mortgage rate and clearly favorable at 6.0%. Over 10 years, the lower-rate ownership scenario produces nearly $24,000 in savings relative to renting, even before considering any home-price appreciation.”

Consumer confidence throughout markets is below pressure, however responses differ

Responses to affordability pressures differ between markets. UK patrons are the least keen to compromise, with fewer ready to purchase a smaller dwelling (42% versus 59% globally), tackle a smaller mortgage (53% versus 65%) or lower life-style spending (59% versus 69%). 

Canadians are essentially the most keen to buy a smaller dwelling (68%), whereas Australians lead on slicing life-style spending (75%) (according to an affordability hole that has been widening for years). New Zealanders are essentially the most adaptable total, main on willingness to take a smaller mortgage (68%) and matching Australia on life-style cuts.

The United States sits close to the worldwide common throughout all measures, reflecting a market below stress however with higher flexibility than the UK and fewer extreme affordability constraints than Australia and New Zealand.

“The dream of homeownership remains, but the route to achieving it is increasingly defined by flexibility, compromise, and careful financial adjustments. As affordability pressures persist, the next phase of housing demand may not be defined by who can move fastest, but who can adapt their plans to move with confidence,” concluded Hepp.

To learn the total report, go to the Cotality web site. 

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About The Report 

The Cotality Consumer Sentiment Report is a analysis collection analyzing how homebuyers in 5 markets – the United States, Canada, the United Kingdom, Australia, and New Zealand – are adapting to the price of homeownership in 2026. The collection is predicated on a Q2 2026 survey of patrons, supplemented by Cotality’s proprietary knowledge units. 

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About Cotality

Cotality accelerates knowledge, insights, and workflows throughout the property ecosystem to allow trade professionals to surpass their ambitions and influence society. With billions of information alerts throughout the life cycle of a property, we unearth hidden dangers and transformative alternatives for brokers, lenders, carriers, and innovators. Get to know us at cotality.com.

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