Homeownership dreams clash with retirement goals for Millennial investors

A new study from the Nationwide Retirement Institute found that 58% of Millennial investors feel they have to choose between homeownership and retirement security as housing prices continue to rise faster than wages. 

“Millennials are navigating their prime earnings years in a financial landscape marked by volatile markets, high interest rates and shifting economic norms,” said Juan José Pérez, president of Nationwide Corporate Solutions. “These challenges are not only impacting their ability to build long-term wealth but also key life milestones like homeownership.”

The study was conducted online in the U.S. by The Harris Poll among 510 advisors and financial professionals and 2,007 investors with at least $10,000 in investable assets. Millennials were defined as those aged 29 to 44 years old.

Once considered a cornerstone of wealth-building, homeownership is now viewed as a barrier to retirement readiness. About 35% of respondents cited rising housing costs — including rent, mortgage payments, property taxes and other expenses — as the biggest obstacle to preparing for retirement.

That figure surpassed concerns over market volatility and economic uncertainty (29%), insufficient retirement income (28%), and financial support for children or aging parents (27%).

When asked which type of debt poses the greatest threat to a secure retirement, 46% pointed to mortgage or home equity loans, followed by credit card debt (39%) and medical or healthcare debt (37%).

Despite these pressures, Millennials are taking action. Since early 2025, many have adjusted their retirement strategies in response to inflation (67%), international trade policy (64%) and rising housing costs (60%).

Amid what the study calls “housing-retirement tension,” Millennials are proactively investing: half have opened retirement accounts such as IRAs or 401(k)s, and 22% have opened brokerage accounts to plan for the future. Still, 22% worry their savings won’t last more than 14 years, and 10% say their retirement funds are already dwindling.

Interestingly, while Millennials cite housing costs as their top challenge, financial advisors see things differently. Eighty-two percent of advisors said healthcare expenses are the most significant factor affecting Millennials’ retirement readiness — compared to only 9% who cited housing prices or mortgage rates.

“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,” Pérez said.