UK homeowners move just once every 25 years and 12% of adults cannot afford to move at all, according to a report.
In a Countrywide survey of over 6,000 renters and homebuyers, nearly half of 18-34 year olds said deposit affordability remains the biggest home buying barrier.
Overall, when participants were asked about their reasons for not moving home, 62% claimed they were happy where they live and 21% said they were unable to afford a deposit.
Affordability remains the big problem for 16% who couldn't afford mortgage repayments, with another 16% put off moving by costs and fees like Stamp Duty.
Market uncertainty played less of a part with only 5% listing house prices falling as a barrier to making a move.
Grenville Turner, chief executive of Countrywide, said:
"Every day we work with home movers to find the right property and the best mortgage deal available to them. We see first-hand that mortgage deposit and repayment affordability remain the biggest issues facing homebuyers in the UK.
"These findings confirm that we are at a crossroad for homeownership, where we could see the next generation becoming a nation of renters without the right intervention from Government.
"Based on current levels of activity, the average home owner moves house once every 25 years as opposed to once in every 12 years. These levels are unsustainable and we call for further support as a strong, vibrant housing market contributes to GDP growth and will dramatically improve the economy."
Halifax became the fourth lender to launch its NewBuy mortgage this morning, following RBS, Nationwide and Barclays in March.
The NewBuy Guarantee scheme aims to kick start the housing market by enabling 100,000 buyers to get up to 95% LTV mortgages for new build homes worth up to £500,000 in England.
The construction industry hopes the plan will create 50,000 jobs.