Press Release
Gen Z homebuyers most willing to cut lifestyle costs to afford a home, Cotality study finds
New consumer report reveals younger buyers are adapting their spending habits as affordability pressures mount.
IRVINE, Calif., September 23, 2026 – Gen Z homebuyers are more willing than other generations to cut back on lifestyle spending to help afford a home, according to research from Cotality, a leading global property information, analytics, and data-enabled solutions provider.
Cotality’s new Consumer Sentiment Report reveals a significant shift in purchasing behavior across the US, Canada, UK, Australia and New Zealand - primarily driven by affordability concerns.
Gen Z emerges as most adaptable generation
Cotality found that Gen Z buyers are most willing to cut lifestyle spending at 78% (Millennials are similarly willing at 77%), compared with 69% of Gen X and 50% of Baby Boomers. 74% of Gen Z respondents say they would take a smaller home compared with 64% of Millenials, 57% of Gen X and 43% of Boomers.
"Gen Z buyers have grown up in an environment of elevated housing costs, so they're entering the market with different expectations,” said 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,” said 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 across markets is under strain, but responses differ
Responses to affordability pressures vary between markets. UK buyers are the least willing to compromise, with fewer prepared to buy a smaller home (42% versus 59% globally), take on a smaller mortgage (53% versus 65%) or cut lifestyle spending (59% versus 69%).
Canadians are the most willing to purchase a smaller home (68%), while Australians lead on cutting lifestyle spending (75%) (consistent with an affordability gap that has been widening for years). New Zealanders are the most adaptable overall, leading on willingness to take a smaller mortgage (68%) and matching Australia on lifestyle cuts.
The United States sits near the global average across all measures, reflecting a market under pressure but with greater flexibility than the UK and less severe 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 read the full report, visit the Cotality website.
About The Report
The Cotality Consumer Sentiment Report is a research series examining how homebuyers in five markets - the United States, Canada, the United Kingdom, Australia, and New Zealand - are adapting to the cost of homeownership in 2026. The series is based on a Q2 2026 survey of buyers, supplemented by Cotality's proprietary data sets.
About Cotality
Cotality accelerates data, insights, and workflows across the property ecosystem to enable industry professionals to surpass their ambitions and impact society. With billions of data signals across the life cycle of a property, we unearth hidden risks and transformative opportunities for agents, lenders, carriers, and innovators. Get to know us at cotality.com.
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