First-time homebuyers aren’t just feeling priced out. They’re lost.

The conversation around first-time homebuyers almost always starts with affordability. And it should, 65% of Gen Z respondents in our YouGov research say home prices are too high. That’s a real hurdle for this segment of homebuyers.   

But when our team dug into genuine responses from Gen Z individuals, something else surfaced just as prominently: confusion. Most respondents weren’t focused on interest rates, they were focused on where to even start.

In an industry that’s eager to serve the next generation of buyers, one of the biggest obstacles isn’t just price, it’s education and access to a clear starting point.  

In a national survey conducted with over 1,000 Gen Z respondents where we asked what would help respondents seriously consider buying a home, most didn’t jump straight to rates or down payments. They talked about guidance and wanting someone to walk them through the basics without feeling judged.

One respondent put it plainly:

That word ~embarrassed ~ carries a lot of weight. When buyers feel behind, they don’t ask questions and tend to just stay in the shadows. They close the tab, tell themselves they’ll figure it out later, and homeownership quietly moves to the back burner.

Another respondent described what they actually need:

48% of Gen Z said a clear roadmap or step-by-step guidance would increase their confidence in the homebuying journey.

Nearly half aren’t asking for a better rate, they’re asking for a place to start.

Only 19% of Gen Z respondents say they plan to buy within the next two years. It’s easy to read that as low interest. But low urgency isn’t the same thing as low motivation.

Gen Z grew up with Google, YouTube tutorials and TikTok explainers. If they want to learn anything, there’s a clear, step-by-step resource waiting for them. Homebuying doesn’t feel like that. The terminology alone, like escrow, underwriting, basis points can make the process feel inaccessible before it even begins.

Add to that a constant flood of conflicting information: rate headlines, influencer hot takes on real estate investing, recession predictions, housing crash theories, rent-versus-buy debates. There’s no shortage of content, but there’s a serious shortage of clarity. It’s like information OVERLOAD. When there’s no obvious starting point, this segment of homebuyers is entering analysis paralysis. The data reflects that paralysis, 11% of respondents said that their biggest hurdle in homebuying is fear of making a mistake. That fear has lead to Gen Z backing away from the homebuying conversation all together.

One respondent described their ideal lender this way:

That’s not someone asking for a price cut. That’s someone asking for a guide, an advisor.

Confusion doesn’t cancel out affordability concerns, but it does compound them. If a buyer doesn’t understand debt-to-income ratios, lender roles, or upfront costs, they can’t accurately evaluate what they can or can’t afford. They’re making decisions based on fear of the unknown, not actual numbers.

The education gap is striking when you look at specific tools. 90% of Gen Z respondents didn’t know how a buydown works, but after a brief explanation, 97% said it would be beneficial for their homebuying journey. That’s not a product problem. That’s an awareness problem. The tool already works; buyers just haven’t been introduced to it yet.

Education won’t solve a pricing problem. But it removes the barrier that keeps people from even finding out where they stand and that barrier is often what keeps someone renting longer than they need to.

Education-first initiatives are becoming essential. As Nora Guerra, SVP of Community Lending Solutions at Guild Mortgage, puts it:

When buyers can see the path clearly, they’re far more willing to take the first step. The opportunity for our industry isn’t just to offer better rates or hope for more inventory. It’s to be better guides.

The buyers who feel lost today want to be homeowners. They just need someone to show them where to start.