For decades, home buying in India was considered a "mid-life milestone," typically achieved in one’s 40s or 50s after years of disciplined saving. However, a structural shift is underway. According to the PB Fintech Lending Year-Ender Trends 2025, the share of new home loan borrowers under the age of 30 has nearly doubled, rising from 9% in 2022 to 16% in 2025.

The Indian residential market is being redefined by this "youth-led" surge, proving that for Gen Z and young Millennials, asset creation is no longer a goal for the distant future—it is an early-career priority.

The "why" factor behind the shift

A lot of reasons have converged to lower the entry age for first-time homebuyers:

Stable dual incomes: The rise of dual-income households and stable salaried positions has significantly enhanced the borrowing capacity of young couples.

Access to credit: Modern digital platforms and transparent regulations under RERA have made the home loan process faster and more accessible for a tech-savvy generation.

The "rent vs. buy" debate: In high-rent metros like Bengaluru and Mumbai, many young professionals now prefer paying an EMI over high monthly rentals, viewing it as a more efficient use of their long-term capital.

Joint ownership: According to the report, 58% of home loans are now taken through joint ownership, allowing young borrowers to pool resources and qualify for higher loan amounts.

Bigger dreams, larger loans

It is not just the number of young buyers that is increasing; their appetite for premium spaces is growing as well. The average home loan ticket size jumped to ₹37 lakh in 2025, up from ₹29 lakh just three years ago. Unlike previous generations who often built standalone homes, today’s young buyers prefer ready-to-move-in apartments in gated communities that offer lifestyle amenities like gyms, swimming pools, and co-working spaces.

Market reality: Affordability in 2025

While demand is high, the market is navigating a complex pricing environment.

Interest rate landscape: As of December 2025, home loan interest rates from major lenders like SBI, PNB, and Bank of Maharashtra start as low as 7.10% to 7.25%.

Price appreciation: Average residential prices across the top seven cities rose by 8% in 2025. In specific hubs like Delhi-NCR, prices surged by 23%, largely driven by the premium housing segment.

The affordability index: Despite rising prices, markets like Ahmedabad, Pune, and Kolkata remain highly affordable, with EMI-to-income ratios hovering around 18-22%.

Mature credit ecosystem

The rise of young homeowners in India indicates a more mature and deliberate credit market in India. As the PB Fintech report suggests, by entering the property market in their late 20s, this new generation of homeowners is building equity earlier in life, supported by a mix of financial awareness and more accessible credit products.

This preference for asset-backed loans over pure consumption-led borrowing points toward a healthier and more resilient retail credit cycle for the years ahead.