CHICAGO — A new national housing survey is shedding light on surprising optimism among millennials: they’re still planning to buy homes, even as mortgage rates remain high. According to a Realtor.com study conducted in April 2025, nearly 1 in 4 millennial respondents said they intend to purchase a home within the next six months — a notable jump from September 2024.
Millennials Defy Market Pressures
Despite borrowing costs hovering near 7%, millennials showed a 23% increase in buying intentions since late 2024. In contrast, only 14% of all surveyed adults plan to buy within the same time frame.
This suggests a widening gap between generations in terms of housing outlook, with millennials pushing forward while older generations show more caution.
Mortgage Rates Still a Key Factor
While interest in buying remains high among millennials, mortgage rates are still slowing many down.
- 55% of Gen Z and 47% of millennials said they are delaying a purchase due to current rates.
- That compares to 35% of Gen X and just 18% of baby boomers who said the same.
Yet, some younger buyers remain undeterred. According to the data, about 2% of respondents said they’d still buy at rates above 6%. However, most potential buyers — 63% — say they’re waiting for rates to fall below 5% before entering the market.
How Buyers Plan To Finance Homes
The survey also asked current homeowners how they financed their home purchases:
- 57% used personal savings
- 15% tapped into investments or retirement accounts
- 12% received loans or gifts from family
- Among future buyers, about 25% expect to use retirement savings
These numbers show that for many younger buyers, especially millennials, creative financing and long-term planning are key to affording a home in this rate environment.
Chicago Market Relevance
While the survey is national, the Chicago metro area is one of several markets watching these trends closely. Millennial homebuyers in Chicago face unique challenges, from rising home prices in select neighborhoods to competition with investors and limited starter-home inventory.
Local agents say buyer sentiment has improved this spring. “We’re seeing more millennials tour homes even with high rates,” said one West Loop realtor. “They’re adjusting their budgets, but they’re not backing down.”
Have you been house hunting in the Chicago area this year? Are high interest rates changing your plans? Share your experience with us at ChicagoSuburbanFamily.com.
Note: Information for this story was provided by a Realtor.com survey conducted on April 10–11, 2025 among a national sample of 2,203 adults 18 years old and older. This story was reported from Washington, D.C.
