Gen Z homebuyers are rushing in early, Kotak home loan data shows
Kotak Mahindra Bank data shows Gen Z is now the fastest growing segment in its home loan book, buying homes well before age thirty.
The generation long known for staying in rented homes is now buying its own before turning thirty. Data from Kotak Mahindra Bank shows the age of first-time homebuyers in India is steadily falling, with Gen Z emerging as the fastest growing segment in the home loan market.
According to the bank's data, the number of home loan borrowers aged 25 to 30 rose 86 percent between FY2024 and FY2026, from 1,234 to 2,290. Gen Z's share of Kotak's personal home loan customers rose from 6 percent to 9 percent over two years, a 50 percent increase in their share, making them the fastest growing young customer segment in the bank's home loan book.
In contrast, the number of home loan borrowers aged 30 to 45 grew by 26 percent over the same period. This shows a shift in how India's youth think about homeownership, with milestones that earlier generations reached late now being achieved much earlier.
For years it was assumed Gen Z would rent for longer, avoid major financial commitments and prefer flexibility over stability. But the data shows that when it comes to housing, many young Indians are making long-term decisions well ahead of expectations. Nakul Saxena, head of the home loans division at Kotak Mahindra Bank, said: "Owning a home still matters deeply to Indian families. The age at which people decide to buy a home is changing. Young borrowers are entering the market with greater clarity and confidence than before."
In many families, today's young professionals are buying homes at the age their parents were still saving for one. In some cases, children are helping fulfil their parents' dream of owning a home with their own earnings, while in others, dual incomes between spouses are allowing decisions that earlier generations delayed for years to be made much faster.
The COVID-19 pandemic also played a big role in resetting priorities around housing. Spending long periods at home led many young families to prioritise adequate space, privacy, natural light, build quality and community living. A home is no longer just a place to live, but a place to live, work and build a future.
According to many young buyers, a home is not bought only after financial stability arrives, it is also a means of bringing stability into life. Higher education, faster career growth and rising incomes are helping many young Indians reach the milestone of owning a home much earlier than previous generations.
Saxena said: "We are seeing much clearer intent. Rather than waiting years to be fully settled, young buyers are showing the confidence to fulfil their dreams early in life. At Kotak, we are proud to walk this journey with them and help turn their intent into reality." This shift is also reshaping how young buyers approach purchasing a home. Instead of waiting to buy a large, permanent home in one go, many are buying homes suited to their current budget and lifestyle, treating the first home as the first step toward future financial growth.
According to Kotak, this rise in young borrowers points to a larger shift in India's housing market. For a growing share of Gen Z, this is becoming their first major financial decision. Owning a home remains a cherished aspiration, but young buyers are pursuing it differently from previous generations. Instead of waiting for the right time or a perfect moment, many are choosing to buy as early as possible.
