Young India Buys Homes Early, Gen Z Leads Loan Demand

India’s home loan borrower profile is getting younger. Fresh survey data shows the average applicant age is 25, not 35.

India’s housing finance market is seeing a clear age reset. A survey-led trend highlighted across business reports says the average age of home loan applicants has dropped to 25, compared with 35+ a few years ago. 

The same study pegs Millennials and Gen Z at 90% to 95% of home purchases, backed by a strong tilt towards online applications. The shift is not limited to metros, with demand building across Tier 2 and Tier 3 cities too. Lenders are also riding steady home loan demand, including in affordable housing segments.

What’s The Shift, And Why Is It Showing Up Now?

The headline issue is simple. Indians are entering the home loan funnel earlier. Reports citing a BASIC Home Loan survey say the average applicant age is now 25. Alongside, Millennials and Gen Z are taking the lead in home buying decisions. 

Online discovery, faster documentation flows, and early-start careers are pulling demand forward. The market backdrop supports this. India’s home loan market is put at $329.9 billion (2024), with 8.9% CAGR forecast for 2025 to 2033.

Here are the key numbers being repeated across the coverage.
 

These numbers show the scale of the behavioural change, not just a social media trend.

Gen Z, Digital Journeys, And Earlier Ownership

The main story sits at the intersection of aspiration and convenience. The BASIC Home Loan survey, cited by multiple outlets, says Millennials and Gen Z now account for 90% to 95% of home purchases, and younger borrowers want the journey to be digital-first. One widely quoted number is that 72% of borrowers under 40 prefer applying online, which aligns with how housing searches, price comparisons, and eligibility checks now start on phones.

There is also a volume story behind it. National Housing Bank figures cited in coverage say individual housing credit rose 14% YoY to ₹33.53 lakh crore in Q2 FY24, and public sector banks held 44%+ of outstanding individual housing loans in that period. So, younger applicants are entering a market that is expanding, and lenders are actively competing for them.

What Led Here: Signals From Earlier Studies And Lender Trends?

This did not begin in 2026. In Dec 2023, Economic Times reported a Magicbricks study that said Millennials and Gen Z (18 to 34) formed 53% of total home loan demand between Oct 2022 and Oct 2023. That was an early marker, and the 2026 survey suggests the youth share has widened further.

On the lender side, Reuters has repeatedly flagged steady home loan demand. In a report dated Apr 28, 2025, Reuters said PNB Housing Finance posted 25% higher quarterly profit, with disbursements up 23%, and affordable housing disbursements doubling to ₹12.91 billion. That gives context on why lenders are leaning into younger borrowers who want faster turnaround.

Now add the competitive layer. LoansJagat, citing a CRIF High Mark report (published Aug 2025), reported public sector banks grew their outstanding home loan share from 37.6% (Jun 2024) to 46.2% (Jun 2025), while private banks fell from 35.2% to 28.2%.

Before the stakeholder comments, the borrower pain points are worth tracking because they keep showing up in the same dataset.
 

These frictions explain why “digital preference” is rising, but borrowers still complain about the last-mile process.

What Stakeholders Are Saying?

BASIC Home Loan CEO and Co-founder Atul Monga said Millennials and Gen Z are “at the heart” of India’s housing story, and they prefer fast and transparent digital loan journeys.

Reuters reporting on PNB Housing also points to continued resilience in home loan demand, including affordable housing.

Conclusion

The data shows India’s home loan age curve is shifting downward, led by Gen Z and Millennials. The next headline will be about faster approvals and cleaner distribution, not just online forms.