For the first time in a generation, data shows that a growing number of people aged 25 to 34 are becoming homeowners. After years of falling rates, this trend is notable, especially for those wondering how much is my house worth after years of volatility in the real estate market.

Looking deeper at the numbers, however, shows a complex story. Middle- and upper-income millennials are making gains in homeownership, young people from low-income families continue to be left behind. The gap between the housing haves and have-nots is actually getting wider.

Signs of Progress for Young Buyers

The Resolution Foundation reports that the homeownership rate among 25–34-year-olds has increased fairly dramatically. This marks a turning point after years of decline, rising prices, and economic stagnation that kept younger generations out of the housing market.

For those born between 1991 and 1995, 14% now own a home by age 25.

But, these increases are not being felt universally. Rich young millennials are four times more likely to own their home compared to those of lower income, and the divide is widening further.

Millennials in the middle third of the income distribution saw the largest increase in homeownership, up nine percentage points to 30%. Those in the top third also experienced gains, with ownership reaching 52%. But among the lowest-income group, homeownership inched up only three points to 13%.

The result? A growing gap between rich and poor millennials when it comes to homeownership. In 2015–16, the wealthiest young adults were 36 percentage points more likely to own a home than their lowest-income peers. Now, that gap had expanded to 39 points.

The bottom line here: more young people are buying homes, but most of them come from financially stable or affluent backgrounds.

The Barriers Facing Low-Income Millennials

You can also see the disparities by looking at the data differently. 35% of low-income millennials continue to live with their parents compared to just 10% of those from upper-income families. Without family support or the ability to save for a deposit, there are steep barriers to buying a home.

Nearly a quarter of 18–34-year-olds spend more than 30% of their income on housing costs. Among low-income households, that number rises to 53%. If you’re spending half of your income on rent already, saving to buy a home is very difficult.  

Long-Term Risks of Unequal Access

This disparity has serious implications for the future. Almost one-third of millennials could be renting into retirement. This trend would put considerable strain on public finances, with the housing benefit bill for pensioners projected to double by 2060.

Beyond the economic costs, there are also emotional and psychological consequences. Housing insecurity and unaffordable rent are linked to increased anxiety, particularly among young people with limited financial safety nets. Today’s housing market is not just shaping where young people live, it’s shaping their life chances, mental health, and long-term stability.

Policy Solutions and What’s Needed Next

To build on the gains made in recent years while addressing the growing inequality, targeted policy action is essential. The Resolution Foundation offers these recommendations.

New Home Building

The government’s goal of building 1.5 million new homes by the end of this Parliament is a critical starting point. Meeting this target would increase supply and potentially moderate house price growth, making homeownership more accessible for first-time buyers.

Reforming Rental Support

Equally important is reforming rental support. Re-linking the Local Housing Allowance to cover the 30th percentile of local rents would better reflect current market conditions and provide relief to struggling renters.

First-Time Home Buyer Programs

The Home Builders Federation points out that this is the first time in decades that first-time home buyers do not have financial support from a government initiative.

First-time buyer programs must be designed to reach those without family wealth. More inclusive financial support, combined with long-term investment in affordable housing, could help level the playing field.

A Fairer Future for All Young Adults

The increase in young millennial homeownership is a sign that change is possible, but it’s only a partial victory. Without policies that address the root causes of inequality, the housing market will continue to reinforce existing socioeconomic divides