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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 66 December 2025 J O U R N A L Market Trends GENERATIONAL PESSIMISM: YOUNG ADULTS GIVING UP ON HOMEOWNERSHIP S eung Hyeong Lee, a Ph.D. Candi- date in Economics at Northwest- ern University, and Younggeun Yoo, a Ph.D. student in economics at the University of Chicago, detailed in a new research paper titled, "'Giving Up': The Impact of Decreasing Housing Afford- ability on Consumption, Work Effort, and Investment," how many younger generations have given up on becoming homeowners. This is a result of the steep decline in housing affordability in recent decades nationwide. According to their predic- tions, the homeownership rate of cohorts born in the 1990s will be approximately 9.6 percentage points lower than that of their parents' generation when they retire. The pair revealed that renters with relatively modest wealth display the same behaviors. Over the course of a person's life, these reactions compound, resulting in a significantly larger wealth disparity between those who give up and those who continue to pursue homeownership. Additional commentary from John Burn-Murdoch, Chief Data Reporter at the Financial Times, further detailed the research findings and further of- fered his insight on the subject. "It has become a rite of passage for every new generation of young adults to be labelled lazy and irresponsible by its elders, but Gen Z has probably had it worse than most," Burn-Murdoch said, attributing Gen Z attitudes toward risky investments like cryptocurrencies and NFTs. There are two major contrasts between Gen Z and those preceding generations facing similar disdain: 1. Rather than fighting back on these characterizations, modern 20-some- things have tended to embrace them, leaning into neologisms such as "quiet quitting," the act of employ- ees doing the minimum required for their job, which means meeting their basic responsibilities and working only their scheduled hours, without going "above and beyond." 2. According to new research, these actions are logical reactions to deteriorating economic conditions, particularly the growing difficulty of becoming a homeowner. Homeowner Sentiment Weakening Among Many Young Adults Reduced work effort, increased leisure spending, and investment in risky financial assets are all factors that are significantly more prevalent among young adults who have little to no realistic probability of being able to afford a home in today's housing market and economy. Research indicates that those for whom homeownership is a more achievable goal in the medium term, or who have already accomplished it, take fewer risks and strive harder at their jobs. Lee and Yoo further outline how the connection between unaffordable housing and economic attitudes among generations seems to be linked.