More than half are worried about the economy Young buyers focus on income potential A Zillow report found that prospective renters are looking for housing.
Home hacking, the trend of homeowners renting out part or all of their property to make extra cash, has become a key consideration for successful buyers, especially Millennial and Gen Z consumers. 55% of Millennials and 51% of Gen Z who have purchased a home said the option to rent out at least part of their home was “very important” during their home buying process.
This proportion far exceeds the 36% and 4% of Generation Z and Baby Boomers respectively. Overall, 39% of successful buyers rated home theft as important.
The report said the data showed clear differences in attitudes between generations towards the property market. “Younger homebuyers—primarily Gen Z and Millennials—especially view rental income as a key factor in their home-buying decisions,” Senior Demographic Scientist Manny Garcia said in a press release.
“For first-time homebuyers who are in a ‘side hustle culture’ where a 9-to-5 job may not fully realize the dream of home ownership, rental income can help them qualify for a mortgage and smooth out their monthly payments,” added Sia pointed out.
When it comes to potentially renting out an entire purchased home, younger consumers are even more likely to do so, with 59% of Millennials saying this is important. A majority of Gen Z buyers, 54%, expressed similar sentiments. In comparison, only 40% of Millennial buyers expressed a similar sentiment. Gen
A higher proportion of potential future homeowners find the opportunity to rent out an entire home for extra income valuable. A total of 55% think this is important, with 64% and 56% coming from Millennials and Generation Z. A majority of Gen Xers (51%) and 23% of Baby Boomers also agree.
The research reflects the impact of declining affordability on the housing market over the past two years, particularly for those entering home-buying age. Median new loan payment increased 11% The Mortgage Bankers Association recently reported a year-over-year increase of more than 17% from 24 months ago.
Another recent consumer survey from Freddie Mac showed that rising interest rates and a scarce housing supply are also dampening current enthusiasm for homebuying. Researchers at the housing finance firm found that A record 85% of consumers said in October that it was not a good time to buy a home.
But the report also consistently found that a significant portion of the Gen Z population recognizes the value of owning a home. Nearly 30% of people buy first The next 5-10 years.
In addition to overcoming interest rate and payment barriers, today’s buyers face competition for a limited number of available homes, increasing the pressure to provide an adequate qualifying down payment and emphasizing the value of additional income streams.
Zillow’s survey found that lack of housing affordability disproportionately affects minority buyers. Renting the entire home is important to 57% of successful Latino buyers and 51% of black households, compared to 42% of white consumers.