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

Gen Z is shaking up the housing market. Unlike their parents, they're not rushing to buy homes. Instead, they're choosing to rent, live with family, or have roommates. This shift is happening because homes and rent are too expensive. Plus, jobs aren't as easy to find as before. Gen Z is the group born between 1997 and 2012. Right now, only 26. 1% of them own their homes. That's not much higher than last year. It's also lower than other generations, except millennials. When Gen Zers were young, about 40% of their parents owned homes at the same age. Now, only 33% of the oldest Gen Zers do. Many Gen Zers can't afford to buy homes. Home prices and mortgage rates are still high. So, they're renting instead. In 2024, nearly half of all renters were Gen Zers. By 2030, they're expected to be the biggest group of renters in the U. S. Most Gen Z renters see it as a smart choice. They like the flexibility it gives them. They can move for jobs or save money for experiences instead of a house. But renting isn't cheap either. In 2022, 58. 6% of Gen Z renters spent too much on rent. This makes it hard to save for a down payment on a home. Some experts think homeownership will be delayed for Gen Z. The high cost of homes is also affecting families. Starter homes are scarce, and bigger homes cost a lot. This makes it hard for young people to start families. Some wait to have kids until they can afford a bigger home or a good school district. Others can't afford more kids if they can't buy more space. Because of this, smaller homes and co-ownership are becoming popular. Builders are making smaller homes and townhouses. These can be shared by roommates or rented out for extra income. Some Gen Zers are even buying homes with their parents or siblings. Experts think this trend will continue. Gen Z might not follow the old path of college, marriage, kids, and a big house. Instead, they're creating their own rules. They want flexibility and experiences over traditional milestones.