The age at which Indians are buying their first home is falling, with Gen Z emerging as the fastest-growing segment in the home loan market, according to data from Kotak Mahindra Bank.
The number of home loan borrowers aged between 25 and 30 years rose 86 per cent between FY24 and FY26, increasing from 1,234 to 2,290, as per Kotak’s data. Gen Z’s share of the bank’s individual home loan borrowers rose from 6 per cent to 9 per cent over the same two-year period, a 50 per cent increase in contribution, making them the fastest-growing younger cohort in the bank’s home loan book. By comparison, borrowers aged 30 to 45 grew by 26 per cent during the same period.
Nakul Saxena, Head of Home Loans at Kotak Mahindra Bank, said homeownership continues to hold a special place in Indian households, but what is changing is the age at which people are making that decision, with younger borrowers now entering the market with greater clarity and confidence. In many families, young professionals are buying homes at an age when their parents were still saving toward one, while in some cases, dual-income households or children contributing to family aspirations are accelerating these decisions.
The pandemic appears to have played a role in reshaping housing priorities, with extended time spent at home leading many younger households to place greater value on space, privacy, natural light, construction quality and community living. According to Kotak, many younger buyers are increasingly choosing to act on their aspirations earlier rather than waiting for complete financial stability, viewing homeownership as something that can create stability rather than something that must follow it.
Higher education levels, earlier career progression and income growth are also helping many young Indians reach homeownership milestones sooner than previous generations. Saxena noted that younger buyers are showing greater conviction and confidence to act on their goals earlier in life.
The trend is also reshaping how young buyers enter the housing market. Rather than waiting to purchase a large “forever home,” many Gen Z buyers are opting for homes that fit their current budgets and life stages, treating their first purchase as a stepping stone toward future financial growth.
(Source: Business Standard)
