Live below your means because you are fiercely determined to own not rent. Look how you spend money and tighten up.... your expenses are your home buying key to a place of your own. Sell off some of your toys because a home is the target, your goal day and night until it happens. 

Making it a priority over streaming subscriptions and Starbucks, etc.

Credit Score
DTI
Income vs. high rents

Post 8/17/2024, adding up to 3% closing costs to their budget for agent fees.

A lot of younger people have YOLO, FOMO lifestyles. They can save up $2,000 to go to a weekend concert. They can spend four figures on the latest smartphone or pad. They get their hair woven, eyelashes done, tattoos, I'm not knocking any of these things. I budget for many of them myself. Because they're not priorities they're luxuries.

If you want to buy a house, then you make different choices. Having said all that, we have to get a handle on inflation.

The desire for a higher lifestyle, so spending on luxury goods. Inflation and high cost of living. The news saying how terrible housing costs are and zapping hope of ever achieving home ownership. Lack of understanding of amount need for a downpayment and closing costs. Unrealistic expectations of location and size.  

Patience... 

It’s a long term effort to save for the future.  The destination of those funds is tbd.  In terms of a down payment, those funds can comes from a variety of sources including gifts from relatives.  

Generally, people who want something have to sacrifice to get it at least those who have limited means do. I was given DNA which helped me save money to the astonishment of my wife & friends. It can be done by anyone. To buy a home, how far are you willing to go? I would eat rice & beans to start with & denial on everything else. I would also seek out the help on a Bonafide, experienced veteran loan officer who knows things/shortcuts that will help. Allow for time which has the final say until you do. Let's hear from others

Lack of planning and discipline to only buy essentials. Yet the high cost of housing and inflation don't help. 

My guess would be accepting the fact that they will need to change their lifestyle. Less eating out, fewer/shorter/closer vacations. Driving a car that's paid for. I'm sure others can add to this list.

 A single guy in my church told me, "I can qualify for an FHA loan, but I can't save up the down payment and the closing costs".

 Per what Candice A. Donofrio said:  the guy ate breakfast at McDonald's every morning.  He subscribed to the print newspaper.  He had some upgraded sports TV cable package at $100 per month.  And on and on.

  When he realized how much all that stuff was costing, he started cutting out the frills.  He put the McDonald's money and the Comcast cable money etc. in a savings account.  It took him about a year; he saved up the money for a nice starter home!

Alcohol, coffee shops, and other overspending on luxuries that will eat up their savings.

Probably sounds snarky but the biggest challenge I see is that Americans are insane with consumerism and can't stop buying $hit they don't need.

Pick your poison: inflation, rising credit card debts (and corresponding higher payments), "buy now, pay later" credit availability, poor monthly spending habits in general (i.e. daily Starbucks), etc. 

Once these folks become Homeowners, additional challenges exist, such as  spikes in homeowners insurance & HOA Dues, higher purchase prices (requiring higher down payments & property taxes), etc.  Recent increases in mortgage rates are not helping the principal + interest portion of cash-flow either.

Starbucks money!  I used to say years ago....if you started saving what you spend at Starbucks (or wherever) that would most likely start adding up fast.  You've got to change your habits if you want to buy a house.  Most of them listened.

Having to much credit card debt with hi interest rates

1. Lifestyle (too free with their money)

2. Student loans

3. They have nothing left over to save for a home after they walk out of the grocery store these days!

Likely countle$$ rea$on$.  Follow the money. . .  

The biggest problem with saving for a down payment is the rising home prices.  It is wisest to get a Gift Letter and buy with the least money down as possible.

Rising home prices.