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 bank's data shows that the number of home loan borrowers aged between 25 and 30 years increased by 86% between FY24 and FY26, rising from 1,234 to 2,290. Gen Z’s share in Kotak’s individual home loan borrowers has moved from 6% to 9% in two years, a 50% rise in contribution, making them the fastest-growing younger cohort in the bank’s home loan book.
In comparison, the number of home loan borrowers aged 30-45 years grew by 26% during the same period.
The trend points to a shift in the way younger Indians approach homeownership. A milestone that earlier generations often pursued later in life is increasingly being achieved much sooner.
For years, Gen Z was expected to rent longer, delay major financial commitments and prioritise flexibility. However, the data suggests that when it comes to housing, many young Indians are making long-term decisions earlier than expected.
“Homeownership continues to hold a special place in Indian households,” said Nakul Saxena, Head – Home Loans, Kotak Mahindra Bank. “What is changing is the age at which people are taking that decision. We are seeing younger borrowers entering the market with greater clarity and confidence than before.”
In many families, young professionals are buying homes at an age when their parents were still saving towards one. In some cases, children are helping fulfil their parents' homeownership aspirations through their own earnings. In others, dual-income households are accelerating decisions that previous generations may have postponed for years.
The pandemic appears to have played an important role in reshaping housing priorities. Extended periods spent at home led many younger households to place greater importance on space, privacy, natural light, construction quality and community living. A home became more than just a place to stay; it became a place to live, work and build a future.
The shift also reflects a broader change in mindset. Instead of waiting for every piece of the puzzle to fall into place, many younger buyers are choosing to act earlier on their aspirations. For previous generations, homeownership often came after years of career and financial progression. Today, many young Indians increasingly see a home as something that can help create stability rather than something that must wait until complete stability is achieved.
At the same time, higher education levels, earlier career progression and income growth is helping many young Indians reach homeownership milestones earlier than previous generations.
"What we are seeing is greater conviction. Younger buyers are showing the confidence to act on their aspirations earlier in life rather than waiting years to feel completely settled,” Saxena said. "At Kotak, we are proud to support them on that journey by helping turn that conviction into action.”
The trend is also changing how younger buyers enter the housing market. Instead of waiting to purchase a large ‘forever home’, many are buying homes that fit their current budgets and life stages, viewing the first purchase as a stepping stone to future financial growth.
According to Kotak, the rise in younger borrowers points to a broader shift in India's housing market.
For a growing section of Gen Z, it is becoming one of the first major financial decisions they take. Homeownership remains a deeply held aspiration, but younger buyers are pursuing it differently from previous generations. Rather than waiting for the perfect moment, many are choosing to take the first step earlier, using homeownership as a way to build stability, create long-term wealth and move forward with confidence.
For a generation often associated with flexibility and constant change, homeownership is emerging as an early expression of stability and if anything, it is arriving sooner than before.
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