An interesting report from Zillow shows that Millennial and Gen Z homeowners using a tried and true method to help pay off their mortgages — renting out part of their home. Some call it “house hacking” but however you want to phrase it, the 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.
House hacking to pay off mortgages
Zillow’s 2023 Consumer Housing Trends Report 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.
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“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.
