Homebuyer Optimism Surges Among College Students
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Homebuyer optimism is increasing significantly among college students, according to recent polling from College Pulse.
Data from the Newsweek/College Pulse study showed that, based on the responses of more than 1,000 undergraduate students last month, the percentage of those who are very optimistic about buying a home in the next 10 years surged from 10 to 23 percent from April to June.
Why It Matters
Buying a home has become increasingly less affordable in recent years.
With home prices reaching record highs and mortgage rates hovering in the high 6 percentage range, the American dream of owning a home one day could be fading among millennial and Gen Z Americans. However, the data reveals that could be changing.
A for sale sign is displayed outside of a home for sale on August 16, 2024 in Los Angeles, California.
A for sale sign is displayed outside of a home for sale on August 16, 2024 in Los Angeles, California.
PATRICK T. FALLON/AFP via Getty Images
What To Know
In June, 23 percent of college students surveyed said they were "very optimistic" about owning a home in 10 years. That was a more than double increase from April when 10 percent said the same.
Another 35 percent said they were "somewhat" optimistic about owning a home, another slight uptick from 26 percent two months earlier.
"This isn't naive optimism. Students are wagering their degrees will outpace housing costs over the next decade," Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.
"The traditional homebuying timeline has been rewritten. Previous generations expected to buy homes in their 20s, today's students plan for a 10-year goal. This extended timeline allows for career establishment, debt paydown and financial stability."
This shift could be rooted in current housing market trends, as a recent Redfin report found that sellers outnumber buyers by 34 percent. While there's an estimated 1.94 million active home listings, only 1.45 million buyers are looking, reflecting a significant gap that could cause home prices to stagger down.
And in a June HomeLight survey of top real estate agents nationwide, 82 percent said that sellers are dropping home prices compared with this time last year.
"Job prospects and overall sentiment are likely the biggest drivers behind this uptick in optimism. What once felt like a distant dream can start to feel attainable when home prices cool and interest rates stabilize," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek.
"Back in April, rates were climbing, and prices seemed to be on an unmanageable trajectory. Now, we're starting to see more balance—prices reaching a level where buyers and sellers are finally meeting in the middle, and rates have stopped rising. That shift in perception changes everything."
However, home prices nationwide were still up 0.6 percent year-over-year in May, and the median sale price was $440,910, still dramatically out of many young Americans' budgets.
What People Are Saying
A spokesperson for College Pulse told Newsweek: "College student optimism about homeownership has grown since early 2025, even as broader political sentiment remains negative. Despite high disapproval of President Trump and widespread concern about the direction of the country, students remain hopeful about their personal futures—particularly around homeownership and career prospects. While trust in society may be low, confidence in individual outcomes continues to rise. This suggests that students are separating national challenges from their own ability to build stable, successful lives."
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek: "Some may laugh at the renewed optimism of college students about home ownership in the coming decade, but it could actually be tied to some financial reality. We're finally starting to see home prices either be stagnant or see declines in some major markets, as sellers are having a harder time finding buyers. That could increase as more baby boomers look to retire and downsize living expenses by selling their existing home for a smaller place."
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: "Students are betting on their future earning power over current market conditions. While 92 percent of prospective homebuyers report stress about purchasing in 2025, college students look beyond immediate chaos. They know education remains the most reliable path to homeownership, College graduates are way more likely to own homes than nongraduates."
Alan Chang, nationwide title and escrow expert, told Newsweek: "I think that college students are realizing that the monthly rent payment vs. the monthly mortgage payment is working out to be close in many markets across the country. The long-term store of wealth in a starter home is also a perfect steppingstone to the next long-term home for professionals that have left school and established a career path."
Nick Friedman, president of Homes at HomeLight, told Newsweek: "We're seeing a shift in buyer psychology, especially among younger generations. Younger consumers today are more willing to take risks and explore flexible paths to homeownership— whether that means buying a fixer-upper, embracing unconventional financing, or accepting higher mortgage rates for the sake of getting in the market."
What Happens Next
While paying for higher education can land many in student loan debt, there's still largely a positive correlation between obtaining a college degree and being able to own a home one day, experts say.
"College students understand something many experts miss: education and homeownership are complementary investments, not competing ones. The decline in homeownership has actually occurred among noncollege graduates, not debt-laden students," Ryan said.
Still, Mike Chambers, founder and CEO of home-selling help platform Ridley, cautioned against letting the optimism overwhelm expectations about the housing market.
"It's great to see more young people feeling hopeful about homeownership," Chambers told Newsweek. "That optimism probably comes from headlines about rising inventory and talk of future rate cuts. But in reality not much has changed: Home prices are still high, interest rates remain elevated, and transaction fees in dollar terms are at or near all-time highs."
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