Millennials Torn Between Homeownership and Saving for Retirement
As higher housing prices stabilize, Millennials feel like they must choose between homeownership and saving for retirement.
A new Advisor Authority study from Nationwide Retirement Institute finds that 58% of Millennials believe they can only buy a home or save adequately for retirement, and not both.
Millennials see housing costs—like mortgage payments, property taxes, and even rent—as a deterrent to their retirement savings, with 35% who even describe it as the “biggest obstacle” in saving for the long-term. Further, 46% label mortgages and home equity loans as the “biggest threat” in attaining a secure retirement.
Since the beginning of 2025, 60% of respondents in this group have adjusted their retirement plans in response to rising housing costs.
Their lack of affordability has caused some resentment, with many who struggle to build wealth through land owning and property keeping.
“Millennials are navigating their prime earning years in a financial landscape marked by volatile markets, high interest rates and shifting economic norms. These challenges are not only impacting their ability to build long-term wealth but also key life milestones like homeownership,” said Juan José Pérez, president of Nationwide Corporate Solutions.
Others have chosen to contribute more to their retirement accounts, with 28% planning to contribute at higher rates to their 401(k) or retirement account within the next 12 months. Twenty-three percent are considering contributing the maximum amount eligible to receive an employer match.
Almost half of respondents are seeking professional guidance and working with a retirement plan advisor. Of the 45% who pay to work with an advisor or financial professional, 75% began pursuing advice in the past 12 months.
Still, Nationwide reports a disconnect between both parties. Whereas Millennials are focused on housing costs, advisors have tried to guide them through other impending obstacles like healthcare expenses and the future of Social Security. Eight in 10 (82%) of advisors cite healthcare costs as an “extremely or very significant” factor in their ability to plan for retirement, while 35% worry over the future stability of government programs like Social Security and Medicare and Medicaid.
Only 13% of Millennials believe healthcare costs will be a hurdle in their retirement and just 6% expect the presumed lack of Social Security benefits to hurt their savings strategy.
“Our survey data shows a disconnect, highlighting an opportunity for advisors to take a step back and ensure they are listening to Millennials’ goals and addressing their concerns before offering solutions – whether those solutions are for short-term or long-term life events,” said Perez.
Nationwide’s Advisor Authority study was conducted by the Harris Poll and collected responses from 510 advisors and 2,007 investors. Among the investors, 667 were Millennials.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
