A new wave of financial behavior among young Americans is intensifying debate over the future of the “American Dream.” Recent reporting shows more Gen Z and younger millennial adults are redirecting money into investment accounts as home prices and mortgage costs keep ownership difficult in many markets. The Wall Street Journal, citing JPMorgan Chase Institute data, reports that transfers from ages 25–39 into investment accounts more than tripled from 2013 to 2023.

At first glance, the narrative sounds like mass retreat from homeownership. But the newest housing data suggest something more nuanced: Redfin says Gen Z homeownership actually rose in 2025, to 27.1% from 26.1% in 2024—still far below where older generations stood at comparable ages, but not a full abandonment of buying.

What changed is less about desire and more about constraints. Redfin’s 2026 analysis also notes improved affordability versus early 2025 as mortgage rates eased from around 7% toward roughly 6.2%, opening a narrow path for some first-time buyers. Yet access remains limited, especially in high-cost metros and for households without family assistance.

Meanwhile, U.S. housing market frictions are still severe. First-time buyers accounted for only 21% of purchases in 2025, a record low in NAR historical context, while many existing owners remain “locked in” by older low-rate mortgages and choose not to move—keeping resale supply tight.

The core takeaway is not that Gen Z has “quit,” but that it is running a two-track strategy: invest now for flexibility and compound growth, while postponing ownership until math improves. If this pattern persists, the long-term effects could be significant—greater wealth inequality between owners and renters, delayed family formation, and a redefinition of middle-class milestones. In that sense, the shift is less a cultural mood swing than a structural response to a housing system many young adults see as increasingly inaccessible.