To help subdue the impact of higher mortgage rates and spiked home prices, millennials and Gen Z prospective homebuyers have turned toward building extra income streams. In fact, two in five Gen Zers and millennials are working side hustles to save for down payments, according to a new Redfin study released last week.

“Buying a home often makes more financial sense than renting if you can afford a down payment and monthly mortgage because you’re building equity,” Redfin deputy chief economist Taylor Marr said in a statement. But some people “simply don’t have the money for a down payment—a situation that has become increasingly common due to rising mortgage rates and elevated home prices.”

Side hustle culture has become increasingly normalized for millennials and Gen Zers. Almost 40% of U.S. adults in these age brackets have a side hustle, according to a May 2023 Bankrate survey. Of those adults who have a second job, one-third say they need it for regular living expenses, while about one-fourth use it for discretionary spending. 

“Side hustles have become more common, but like so many things in this inflationary environment, people are working harder but not necessarily getting ahead,” Ted Rossman, Bankrate senior industry analyst, said in a statement. “Side hustlers are much more likely to view this extra income as essential, rather than a passion project or a way to get ahead financially.”

Millennials have gotten creative in other ways to raise enough funds for a down payment. One example is the rise in “first-home funds” on wedding gift registries. Of couples who created registries in 2022, 16% established a home fund, Cathryn Haight, editor of gifting and stationery at The Knot, a wedding planning site and vendor marketplace, previously told Fortune. 

While millennials and Gen Zers are getting more creative to achieve homeownership, these generations still struggle to even envision ever being able to own a home. Nearly 20% of millennials and 12% of Gen Zers believe they’ll never own a home, according to the Redfin survey, with the top reasons being that mortgage rates are too high, available homes are too expensive, and an inability to save for a down payment. 

The top reason millennials say they’ll never own a home is that available homes are “too expensive,” the Redfin study shows. A contributing factor to high prices is a lack of starter homes on the market, adds Andy Phillips, director of agency and industry relations at H&R Block’s Tax Institute. 

While wages have increased during the past few years, the pace doesn’t match that of increasing home prices. Average hourly earnings for all employees in January 2019 was $27.59. Earnings increased to $33.82 per hour, according to Federal Reserve Economic Data, a 22.5% jump. But median home sales prices are up 40% since 2019 at more than $421,000, according to Redfin. 

“Most of the first-time homebuyers I am working with are faced with challenges of affordability and competition,” Donna Incorvaja, a real estate agent at RelatedISG Realty, told Fortune in a recent interview. “It’s not that they can’t afford to buy, but that what they can afford in today’s market is very different from what a younger generation could buy three to four years ago.” 

Despite concerns from millennials that they’ll never be able to afford buying a home, half of the generation has achieved homeownership. But sometimes what can discourage millennials from making a purchase is clinging to the idea of finding their “dream home” during their first homebuying experience. 

Realtors like Paul Beaudreau with KW Realty in Burlingame, Calif., however, encourage clients to accept the idea of “trading up.” He teaches his buyers that purchasing a more affordable house as your first home, building equity, then selling it can be a way to save up for a down payment on a “dream home.” 

“While I don’t try to tell my clients to give up on that dream home, I’m trying to explain to them what the path is to get to that dream home,” he tells Fortune. “Your first home is never your last home, and quite frankly is never your dream home.”

Tax incentives and first-time homebuyer programs can also help millennials afford to buy a house, Phillips says. Mortgage interest is deductible on up to $750,000 of mortgage debt ($375,000 if married filing separately). Buyers can also deduct real estate taxes—and mortgage insurance, home office deductions, and other benefits may also apply to certain qualifying taxpayers who own a home, he adds.

Plus, “you actually may be able to qualify for a first-time homebuyer program, even if you’ve owned a home in the past,” Phillips says. “Generally, if you haven’t owned a home within the last three years, certain first-time homebuyer programs may still apply.”