Summary
Gen Z faces challenges in buying homes due to high prices and mortgage rates. As a result, many in this group prefer renting and believe it fits their lifestyle better. This shift might change the U.S. housing market in the future.
Key Facts
- 26.1% of Gen Z individuals owned homes last year, a slight decline from 26.3% in 2023.
- Gen Z owns homes less often than previous generations, with only 33% of the oldest members being homeowners.
- Many Gen Z individuals prefer renting due to high home prices and mortgage rates over 6%.
- In 2024, Gen Z made up 47% of recent renters who had moved in the past year.
- By 2030, Gen Z is expected to become the largest group of renters in the U.S.
- 83% of Gen Z renters see renting as a way to save money for life experiences rather than material possessions.
- 58.6% of Gen Z renters were considered rent-burdened, spending a large part of their income on rent.
