- More than half of young home buyers consider renting out all or
a portion of their home to produce additional income.
- Latinx buyers are more strongly inclined to rent out a portion
of their homes than all other racial groups.
SEATTLE, Nov. 16,
2023 /PRNewswire/ -- Young home buyers, who more
often struggle to afford a down payment and mortgage, are leading a
popularity surge in house hacking – renting out part or all of a
home for extra cash.
More than half of young home buyers
consider renting out all or a portion of their home to produce
additional income
A recent Zillow® survey shows most Millennial (55%) and Gen
Z (51%) buyers find it very or extremely important to have the
opportunity to rent out part of their home for extra income while
living in it. That's compared to 39% of all homebuyers, which is up
eight percentage points in the past two years.
Zillow's 2023 Consumer Housing Trends Report (CHTR) also shows
that more than half of Millennial (59%) and Gen Z (54%) buyers say
it's highly important to be able to rent out the entire home in the
future, compared to 43% of all buyers.
"Younger homebuyers — mostly Gen Z and Millennials — are
especially into the idea of rental income as a key factor in their
home buying decisions," said Zillow senior population scientist
Manny Garcia. "For those first-time
buyers navigating the 'side hustle culture,' where a regular 9-to-5
might not quite cut it for homeownership dreams, rental income can
step in to help with mortgage qualification and smoothing out those
monthly payments."
Zillow's survey also further illustrates the disproportionate
impact of the affordability crisis on households of color, while
reinforcing that people maintain an unwavering desire to own a home
regardless of market conditions.
Latinx homebuyers prioritize the potential for rental income at
a higher rate than other racial groups. Among Latinx buyers,
51% expressed interest in renting a portion of the home for
additional income while residing in it, followed by 46% of Black
buyers and 40% of white buyers.
To empower homeowners looking to generate income, Zillow
developed a suite of tools, available through Zillow Rental
Manager, including free listings, pricing suggestions, background
checks, online applications, and state-specific lease generation.
These resources provide comprehensive support for those seeking
rental income from their single-family or multi-unit
properties.
Successful Buyers:
High Importance of Rental Income from Home Purchase by
Generation
|
(based on 2023 CHTR
data)
|
Share of
successful
buyers who
consider each
very or
extremely
important
|
Total
|
Gen Z (Ages
18-28)
|
Millennial
(Ages 29-43)
|
Gen X (Ages
44-58)
|
Boomers +
Silent Gen
(59+)
|
Opportunity to
rent out a
portion of the
home for
rental income
while living in
the home
|
39 %
|
51 %
|
55 %
|
36 %
|
4 %
|
Opportunity to
rent out entire
home in the
future to
produce rental
income
|
43 %
|
54 %
|
59 %
|
40 %
|
8 %
|
Successful Buyers:
High Importance of Rental Income from Home Purchase by
Race
|
(based on 2023 CHTR
data)
|
Share of
successful buyers
who consider
each very or
extremely
important
|
Total
|
White
|
Black
|
Latinx
|
Opportunity to
rent out a portion
of the home for
rental income
while living in the
home
|
39 %
|
40 %
|
46 %
|
51 %
|
Opportunity to
rent out entire
home in the
future to produce
rental income
|
43 %
|
42 %
|
51 %
|
57 %
|
Prospective Buyers:
High Importance of Rental Income from Home Purchase among Home
Shoppers
|
(based on
2023 CHTR data)
|
Share of
prospective
buyers who
consider each
very or
extremely
important
|
Total
|
Gen Z (Ages
18-28)
|
Millennial
(Ages 29-43)
|
Gen X (Ages
44-58)
|
Boomers +
Silent Gen
(59+)
|
Opportunity to
rent out a
portion of the
home for
rental income
while living in
the home
|
46 %
|
43 %
|
58 %
|
40 %
|
13 %
|
Opportunity to
rent out entire
home in the
future to
produce rental
income
|
55 %
|
56 %
|
64 %
|
51 %
|
23 %
|
About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate
to make home a reality for more and more people. As the most
visited real estate website in the United
States, Zillow and its affiliates help people find and get
the home they want by connecting them with digital solutions, great
partners, and easier buying, selling, financing and renting
experiences.
Zillow Group's affiliates, subsidiaries and brands include
Zillow®; Zillow Premier Agent®; Zillow Home Loans℠; Trulia®; Out
East®; StreetEasy®; HotPads®; ShowingTime+℠; and Spruce®.
All marks herein are owned by MFTB Holdco, Inc., a Zillow
affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS
#10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a
Zillow affiliate.
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SOURCE Zillow, Inc.