Gen Z's New Take on Homes: Renting, Roommates, and Rewriting the Rules

Unlike their parents, they're not rushing to buy homes.

The Shift in Homeownership

• Gen Z (born between 1997 and 2012) is choosing to rent, live with family, or have roommates.
• Only 26.1% of Gen Z owns homes, slightly higher than last year but lower than other generations except millennials.
• 40% of their parents owned homes at the same age, compared to 33% of the oldest Gen Zers today.

Why Renting?

• High home prices and mortgage rates make buying unaffordable.
• Nearly half of all renters in 2024 were Gen Zers, expected to be the biggest group by 2030.
• Flexibility is a key factor; renting allows for easier job relocation and saving for experiences.

The Cost of Renting

• 58.6% of Gen Z renters spent too much on rent in 2022, making it hard to save for a down payment.
• Experts predict delayed homeownership for Gen Z due to high costs.

Impact on Families

• Starter homes are scarce, and bigger homes are expensive.
• Young people delay starting families until they can afford bigger homes or good school districts.
• Some can't afford more kids if they can't buy more space.

New Trends

• Smaller homes and co-ownership are becoming popular.
• Builders are creating smaller homes and townhouses for roommates or rental income.
• Some Gen Zers are buying homes with parents or siblings.

The Future

• Experts believe this trend will continue.
• Gen Z may not follow the traditional path of college, marriage, kids, and a big house.
• They prioritize flexibility and experiences over traditional milestones.