For millions of renters in the U.S., the biggest hurdle to homeownership is often a lack of downpayment funds.

Downpayment shortfalls are particularly acute among Gen Z members, defined as adults who were between the ages of 18 and 28 in 2025. That demographic had a median planned downpayment of $41,250, or 10% of the planned purchase amount, based on a LendingTree analysis of mortgage purchase inquiries submitted to its platform from Jan. 1, 2025, to May 31, 2026.

That figure is the lowest of any generation and represents a 25% discount from the overall median of $55,000, according to LendingTree data. Millennials, who were aged 29 to 44 in 2025, were able to muster a healthier median downpayment of 15%, or $65,000, based on the median planned purchase amount.

“The size of a downpayment often tells the story of today’s housing market,” Matt Schulz, LendingTree’s chief consumer finance analyst, said in commentary shared with Scotsman Guide.

“Younger buyers aren’t necessarily putting less down because they want to,” Schulz continued. “Many are balancing high home prices, elevated rates and years of inflation that have made it harder 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.”

According to an analysis released Wednesday by Down Payment Resource (DPR), there were 2,746 homeownership affordability programs available in the U.S. during the second quarter of 2026. Designed to reduce loan-to-value ratios, the programs cover upfront housing expenses, including downpayments and closing costs.

While many homeownership assistance programs carry repayment stipulations, DPR highlighted a growing number of grant programs from states and other sources, which totaled 234 during the second quarter and do not require repayment.

DPR also highlighted the fact that 62% of programs are available to households with incomes exceeding $100,000, while 291 programs have no income restrictions whatsoever, rebutting a common misconception that downpayment assistance programs are intended only for low-income borrowers.

“Quarter after quarter, the universe of available programs keeps expanding, and so does the flexibility they offer,” Rob Chrane, founder and CEO of DPR, said in a press release accompanying the report. “The surge in grant programs is a good example. These aren’t resources for a narrow slice of buyers. They’re mainstream financial strategies that lenders and real estate professionals should be putting in front of every qualified borrower.”