The American dream of homeownership is shifting as a new generation prioritizes renting over buying, with record numbers of households choosing rental properties amid ongoing housing affordability challenges.
There are currently a record 46 million renting households in the U.S., according to Census Bureau data, and many younger Americans are looking at renting as a long-term solution to the housing affordability crisis rather than a stepping stone to homeownership.
A recent survey found that nearly 3 in 4 Gen Z renters view renting as a smarter option than buying. Gen Zers were born between 1997 and 2012, and now represent more than 20% of the U.S. population.
This means their attitudes toward renting and homeownership could signal a massive shift for the entire country.
According to recent data by the National Association of Realtors, more homes were purchased last year by the Silent Generation — folks in their 80s and 90s — than by Gen Z.
The growth of the rental population in the country is leading to a push for more apartment construction, with developers expected to deliver more than half a million new apartment units this year, according to RentCafe.
Home prices are about 40% higher than they were before the COVID-19 pandemic, and interest rates remain high.
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