For Gen Z, inheritance is the surest path to owning a home

Gen Z individuals are increasingly considering inheriting a family home as the most reliable means of homeownership, according to a recent study. Harsh, a 29-year-old social sector worker, has been saving a substantial portion of his salary each month in an effort to purchase his own residence. He acknowledges that while his parents' generation also aimed to own a home, the astronomical rise in housing prices and stagnant incomes make this goal considerably more challenging for his generation compared to theirs.

A study by the Centre for Social and Economic Progress (CSEP) revealed that homes in India now cost 11 times an individual's annual income, exceeding the affordability benchmark of 5 times. Housing prices in major cities like Mumbai, Delhi, and Gurugram have either doubled or tripled between 2010 and 2025, according to data from Knight Frank, a real-estate consultancy.

The oldest members of Gen Z face an even more daunting economic landscape, with increasing unemployment rates, spiraling inflation, and stagnating wages. Only about 2.8 million out of the 5 million students who graduated annually between 2005 and 2023 found employment, according to a study by Azim Premji University. Additionally, real wages have declined by 4% between 2012 and 2024.

Despite these challenges, Gen Z remains committed to homeownership, with seven out of ten individuals preferring to buy a home rather than inheriting one. Their parents, who bought property in the '90s and early 2000s, were fortunate to make their purchase before prices began to soar. Real estate accounted for 77% of an Indian household's total assets in FY22.