While Gen Z potential homebuyers are planning to make a lower down payment than other age groups, the next segment on the ladder, millennials, along with baby boomers, expect to offer the largest, a LendingTree study said.

It looked at over 130,000 purchase money mortgage inquiries submitted through its site from Jan. 1, 2025 to May 31 of this year; products were limited to fixed-rate conventional and Federal Housing Administration loans.

"The size of a down payment often tells the story of today's housing market," Matt Schulz, LendingTree's chief consumer finance analyst, said in a statement accompanying the report. "Younger buyers aren't necessarily putting less down because they want to."

High home prices, elevated mortgage rates and years of inflation have made it harder for this group to build savings.

"That doesn't mean homeownership is out of reach, but it does mean many first-time buyers have less room for error than previous generations," Schulz continued.

Gen Z made up 20% of the second quarter rate locks, while millennials had a 45% share, Intercontinental Exchange reported earlier this month. Closing costs also have an impact on affordability.

The overall median down payment across the sample for the 50 largest metro areas was $55,000. For Gen Z, those born between 1997 and 2012, the median was $41,250.

But for both baby boomers (between 1946 and 1964) and millennials (1981 to 1996), the median planned down payment was $65,000.

The demographic between those two, Gen X, had a planned median of $56,250.

Gen Z has the lowest planned median down in all 50 of the metro areas (although they were tied in two), while baby boomers led outright in 27 and tie in another 11.

In a pair of the nation's most expensive housing markets, millennials had the highest median planned down payment: $250,000 in San Jose, California, and $195,000 in nearby San Francisco. The median across all four groups in those cities were $190,000 and $170,000 respectively.

For Gen Zers looking to buy in San Jose, the median planned down payment was $115,000; in this market, they were tied with the baby boomers.

By percentage, the overall median planned down payment was 15%; boomers and Gen X were at 20%, the level at which a credit enhancement like private mortgage insurance on a conforming loan would not be needed. Millennials, the largest share of LendingTree shoppers at just under 45% during the study period, had a median down payment of 15%. Gen Z had a 10% median.

In 11 of the 50 markets, the planned median down payment across the sample was 20%. Besides San Jose and San Francisco (the only cities Gen Z was planning to put this much down), the other cities were New York, Los Angeles, Chicago, San Diego, Seattle, Miami, Washington, Philadelphia and Boston.