Gen Z Navigates Housing Hustle: Escaping Soaring Mortgage Rates, Nearly One-Third Live With Family Members

With homeownership becoming out of reach for many Americans as mortgage rates remain at a 20-year high, nearly one-third of Generation Z are living with a parent or family member.

According to a recent study from Intuit Credit Karma, 48% of Americans don't own a home, 36% rent and 11% live with their parents or other family members. The percentage of people living with family jumps to 31% when considering Gen Z respondents.

The increase in Gen Z renters living with family members hasn't impacted the demand for rental housing or how competitive the units are.

"Barring the end of last year, the rental market has been very strong," Liu said. "In most markets, it's really been a landlord market. Our advice has been, if you can stay in your unit, you're likely to get better economics than moving elsewhere."

Liu suggests renters negotiate pricing with their landlords or property management companies. In addition to keeping rent lower, it also avoids the expenses associated with moving.

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Of people who rent, nearly one-quarter say they can no longer afford to pay their rent. The problem is greatest among millennials and Gen Z — 30% and 27%, respectively — compared to 10% of respondents 69 and older. Many renters are sacrificing necessities to pay their rent, including 41% of Gen Z and millennials.

At 69.58 million members, Gen Z accounts for about 21% of the U.S. population, according to Point2, a division of property management software firm Yardi Systems. The share of Gen Z who own their own home is less than 17%, and the percentage is only expected to grow, according to the most recent data from the U.S. Census Bureau.

Those who are bent on purchasing homes will have a better chance in the South and Midwest. Fort Wayne, Indiana; Corpus Christi, Texas; and Detroit are more affordable cities to buy a home.

Of the 13 major Texas cities analyzed, three are among the top 10 where prospective Gen Z buyers would have a better shot at becoming homeowners. Corpus Christi, Laredo and Fort Worth have somewhat affordable home prices below $350,000 and not that many sell above the asking price.

It's almost impossible for Gen Z buyers to find a house they can afford. In Fremont, California, for example, million-dollar home prices are nearly 23 times the average young person's household income, but homes are flying off the market in just 10 days and often selling for above the listing price.

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