RentCafe: Gen Z Renters Increasing

(Image courtesy of Andrea Piacquadio/pexels.com)

RentCafe, Santa Barbara, Calif., released a new analysis of Gen Z renters, finding that their numbers have increased significantly.

There were 3.7 million more Gen Z renter households in 2023 than in 2018.

That may be, in part, because many of them aren’t yet homeowners–only 17% of Gen Zers currently own a home, behind millennials’ pacing.

In terms of areas seeing the largest increase in Gen Z renters, Southern cities are popular. Birmingham, Ala., is the metro with the fastest growth in Gen Z renters, with a thirteenfold surge from 2018 to 2023. That’s followed by Raleigh, N.C., with a twelvefold increase, and Buffalo, N.Y., with 10 times as many renters. Nashville, Tenn., Denver, Jackson, Miss., and Washington, D.C. all have nine times more than they did in 2018.  

Looking at cities where Gen Z residents are most likely to be renters, San Jose, Calif., tops the list, with 94.74% of Gen Zers renting. That’s followed by Lafeyette, Ind., at 93.69%, College Station, Texas, at 93.32%, San Francisco, at 92.11%, and Gainesville, Fla., at 92.08%.

RentCafe also analyzed metro areas where Gen Z residents are beginning to buy. Tucson, Ariz., saw the greatest increase in Gen Z homeowners since 2018, increasing from 35 households to 5,991.

Next was Jacksonville, Fla., with 58 times more Gen Z homeowners compared with 2018, Dayton, Ohio, with 56 times more, Omaha, Neb., with 44 times more and Lafayette, La., with 43 times more.

The highest share of Gen Z homeowners can be found in Ogden, Utah, with 40.94% of the cohort owning their home. Next is Detroit, at 32.73%, Birmingham, Ala., at 30.39%, Jackson, Miss., at 30.24%, and Greenville, S.C., at 27.79%.