The media and social media present data showing Gen Z and young millennials appear to own homes at a lower percentage than in the past. They conclude the reason for this is the huge increase in home prices (up sharply during and after the pandemic and government expanding the money supply, causing inflation – while simultaneously having reduced home construction since the 2008-2010 Great Recession). Home prices really have shot up in many areas, leading to less affordability.

But there has also been a huge change in personal values, and the change in the job market from the 1980s to today. A majority of Gen Z – in multiple surveys – say they prefer to rent to have options for job hopping, moving to a better place, or for travel – or because renting is less expensive than the mortgage payments to buy the home they’d like to have. These values are different than in the past – and those values may also be a factor in home acquisition.

To be clear – housing prices have shot up faster than their traditional growth rate. It is possible that they will revert back to the mean. Average home prices have fallen in 2025, and in some “hot markets” like Florida or Austin, Texas or Colorado, home prices have begun to fall sharply.

Having gone through the Covid pandemic nonsense (most were too young to have been heavily influenced by The Great Recession) their views are different than the views of those growing up in the 1980s.

Post Covid, most of us no longer think the future is guaranteed – and there is merit to spend now on experiences. This makes much sense and Gen Z is tuned into this.

1. What the 2025 data shows about Gen Z’s preferences

Multiple surveys in the search results confirm that Gen Z explicitly prefers renting — not just because they can’t afford homes, but because renting aligns with their values.

Key findings from 2025 surveys:

• 72% of Gen Z say renting is financially smarter.
• 83% say renting allows them to save for priorities like travel or career development.
• Nearly three in four Gen Z renters say renting is a smarter option than buying.
• Gen Z views renting as a way to maintain mobility, flexibility, and freedom.

This is not soley about affordability — it’s a lifestyle preference.

2. Why comparing “young people then vs. now” is misleading

Numerous media pundits and social media commenters make the large mistake of comparing something in the past to today – without taking into account there are multiple variables in play – and that they are comparing oranges of the past with apples of today – they are not making an apples-to-apples comparison.

Gen Z’s average age is 21

Most are not yet in the traditional first‑time homebuyer window (28–30). So comparing Gen Z homeownership to Boomers or Gen X at age 34 (which happens often due to how the data was collected) is comparing:

• a cohort still in early adulthood
  to
• a cohort already in mid‑career stability

This creates an illusion of “declining homeownership” that is partly an artifact of age structure.

Home affordability in the 1980s, when adjusted for inflation, was as bad as recent years (Homebuyers in the 1980s Didn’t Have It as Good as We Thought) – with a house payment requiring 56% of median income. Many young home buyers came of age during the unusual low interest rates and market disruptions of recent years and thought that was normal and that is where they think home prices and mortgages should be.

3. Affordability matters — but values have changed too

The data show affordability is a major barrier:

• High home prices, high mortgage rates, and student debt make buying difficult.
• Nearly half of potential buyers cannot afford a home in 2025.

But affordability alone does not explain the shift.

Gen Z is also choosing renting because it aligns with their priorities:

• Mobility (ability to move for jobs or lifestyle)
• Travel (explicitly cited as a reason by 83% of Gen Z renters)
• Career experimentation
• Avoiding long‑term commitments
• Urban living
• Tech‑first rental experiences (63% prefer digital rental management)

This is a values shift toward fluidity, experiences, and optionality.

4. The 1980s were a different environment

In the 1980s:

• The Baby Boom cohort was entering the workforce en masse.
• Stability was a cultural norm.
• Job‑hopping was stigmatized.
• Travel was expensive and less accessible.
• Homeownership was seen as a rite of passage and a marker of adulthood.
• Renting was viewed as temporary or inferior.

Even though mortgage rates were extremely high (up to 19% in the early 1980s), the cultural expectation was still:

“You grow up, get a job, buy a house.”

Gen Z does not inherit that worldview.

5. Why values have changed: the deeper generational psychology

Here’s the structural shift:

A. Gen Z grew up in instability

• Great Recession (for those old enough to be aware of it – Gen Z was born 1997 to 2012 and at least half were not yet born or old enough to be aware of the 2008-2010 downturn).
• Pandemic
• Housing crisis
• Student debt
• Gig economy
• Rapid job turnover

They learned early that stability is not guaranteed. (True!)

B. They prioritize flexibility over permanence

Renting supports:

• job mobility
• geographic mobility
• lifestyle experimentation
• travel
• avoiding long-term debt

C. They see homeownership as a later‑life goal

Not a prerequisite for adulthood.

D. They value experiences over assets

This is reflected in:

• travel spending
• remote work aspirations
• preference for urban living
• desire for “freedom” over “roots”

6. Is the decline in young homeownership due to cost or values?

The evidence suggests it’s both, but values are playing a larger role than most analyses admit.

Economic constraints

• High prices
• High mortgage rates
• Low inventory
• Student debt

Value shifts

• Renting seen as smarter (72%)
• Renting supports travel and career exploration (83%)
• Renting aligns with mobility and flexibility
• Homeownership is no longer a cultural mandate

The search results show that Gen Z’s preferences are not simply reactive — they reflect a generational redefinition of adulthood.

7. Values have changed.

Gen Z is not simply priced out. They are choosing renting because it fits their worldview, their economic reality, and their desire for flexibility.

The 1980s Baby Boomers lived in a world where:

• stability was rewarded
• mobility was rare
• homeownership was expected

Gen Z lives in a world where:

• mobility is rewarded
• flexibility is a survival strategy
• homeownership is optional