Many people born between 1997 and 2012 are now striking it out on their own, and in some cases, looking to buy homes, according to fresh research from RentCafe.
But more often, today's Gen Zers want to rent a home in locations that boast a strong job market and favorable cost of living.
The slideshow above illustrates the top 10 "rental hotspots" in 2026 for Gen Z, according to RentCafe, based on this demographic's overall percentage of the rental market.
What else should insurance professionals know about the renting and home-buying habits of today's 20-somethings? Here are some additional insights from RentCafe's research:
- Gen Z renters increased sixfold in five years, adding 3.7 million households nationwide.
- Southern metros are leading the Gen Z rental growth.
- Coastal cities continue to claim the highest concentrations of Gen Z.
- Gen Z homeownership remains limited at just 17% and is growing fastest in affordable, mid-sized markets.
- Ogden, Utah has the highest share of Gen Z homeowners with 41% of Gen Z households owning their homes.
Any business looking to bulk up its workforce would be wise to follow the movement of Gen Z, as these young people are known for being highly connected, tech-savvy digital natives who are inclusive, pragmatic and socially conscious.
RentCafe Analyst Adina Dragos says many Gen Zers will live with high rent and tight quarters if it means being "close to everything."
"Social media adds to the appeal as the 'fear of missing out' (FOMO) makes living there feel like an important and shareable life experience," Dragos says.
It follows that today's Gen Z rental hotspots may soon give way to cities that are trending up with this demographic of renters. Young adults are flocking to cities such as Birmingham, Buffalo and Nashville because these cities offer good schools, job opportunities and an array of outdoor activities.
(Featured image credit: Seventyfour/Adobe Stock)
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