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Frank DeBernardo is a California real estate broker based in Capitola who leads PORTFOLIO Real Estate as broker and owner. With decades in residential and commercial transactions, Frank DeBernardo has overseen sales of landmark Santa Cruz properties, including a $5.5 million oceanfront home at 1307 W. Cliff Drive. He began in construction project management in the early 1990s, entered real estate as a teenager, and earned recognition as one of the state’s youngest brokers. A UC Santa Barbara graduate, he completed his business economics degree with distinction and participated in leadership and honors programs. He has owned and managed boutique firms, coordinated high volumes of annual transactions, and maintains long-term engagement with professional development, including Buffini & Company coaching and national real estate events. His background provides context for the topic of homeownership among Gen Z and Millennial Americans and the strategies young buyers use today.
The United States has suffered a housing crisis for several years. Reports from 2025 suggest the housing shortage is worsening, with no suggestions of a future reversal. The crisis is perhaps most pronounced among prospective Gen Z and millennial homeowners, the majority of whom cannot afford homes. A Fortune study found the nation’s first-time homebuyer rate at half of the historical norm. Put more clearly: close to 3.2 million Americans purchased their first homes in 2004, compared to just 1.14 million first-time homebuyers in 2024, a record low for the US.
Several factors have impacted younger Americans’ ability to purchase homes. According to the Education Data Initiative, student debt began to grow again in 2024 following a year-over-year decline in 2023; total student loan debt sits at about $1.814 trillion. The burden of student debt makes it impossible for many younger Americans to consider significant financial investments, including homeownership.
In addition to Gen Z and millennial-specific issues, the same factors contributing to the national housing crisis impact younger Americans. The average sales price for American homes stands at about $423,000, placing homeownership beyond the reach of many Americans, regardless of age. Furthermore, the nation’s housing shortage hit 4.7 million in 2025, meaning even Americans who can afford new homes struggle to find a suitable property.
Declining marriage rates among younger Americans have further impacted affordability. Fewer than 60 percent of Americans aged between 25 and 34 live with a spouse or partner, compared to 80 percent in 1967. Younger Americans also marry later in life compared to previous generations, with women marrying around 28 years old and men at about 30 years old. The lack of a dual income places a greater financial strain on prospective homebuyers.
Real estate professionals have helped develop several strategies to alleviate a few of the common obstacles to homeownership for Gen Z and millennial Americans. These strategies include rentvesting, co-buying, and house hacking.
The rentvesting strategy involves purchasing an investment property, ideally in an up-and-coming suburb, while simultaneously renting a property that better suits the buyer’s lifestyle needs, such as a bustling metropolitan environment. In this way, individuals or families can develop a long-term residential property while living in a desirable market.
Rentvesting poses an immediate challenge to many homebuyers: cost. This strategy is only an option for prospective homeowners who can afford to pay rent and a mortgage at the same time, though rentvesters should seek the most affordable housing markets in the nation, and may not actually see the property they own for several years.
Co-buying is a fairly self-explanatory concept. Rather than purchasing a home as a solo investor or with a partner, co-buying involves acquiring property with numerous people, including family and friends. The benefits and drawbacks are fairly straightforward: the more people who contribute to monthly home expenses and related costs, the lower each person’s expenses become.
However, buyers must navigate a more complex title process, such as joint tenancy and tenancy in common agreements. Furthermore, once an individual is ready for their own space, they must figure out how to divest without losing equity or creating a financial burden for their previous roommates.
Finally, house hacking is the process of generating income from a residential property, effectively reducing the expenses of maintaining the property. The class example of house hacking involves purchasing a multifamily home, living in one unit, and renting additional units to help offset mortgage payments and other expenses.
Frank DeBernardo is the broker and owner of PORTFOLIO Real Estate in Capitola, California. He began his career in construction management, entered real estate at 18, and has since represented buyers and sellers across residential and commercial markets. His experience includes leadership of boutique firms and sales of notable Santa Cruz properties. A UC Santa Barbara graduate who earned academic distinctions, he maintains professional affiliations with the National Association of Realtors and participates in Buffini & Company coaching and national industry events.