Report: renting in Bay Area is a "no-brainer" for young Gen Zers

Gen Z Housing
RDNE Stock Projects via Pexels

Buying a house presents a bigger financial challenge for Gen Zers in their 20s with homeownership accounting for 30% of their income before the age of 30, according to a new report from RentCafe.

"Renting is a no-brainer for Gen Zers younger than 30 in places like San Jose...due to high owning costs," the report states.

The Gen Z generation also know as Zoomers is the population born in the late 1990s and early 2000s. 

The costs of ownership for Zoomers during their 20s in the Bay Area is high:

  • $466,982 in San Jose
  • $371,077 in San Francisco 
  • $265,527 in Santa Rosa

San Jose tops the list of locations with the biggest differences between owning and renting costs for Gen Zers younger than 30. In San Jose, homeownership will cost nearly $171,000 more compared to renting — by far the largest noted in the report. 

A renter in San Jose will spend 23.7% of their income on housing by the time they reach 30 as compared to a Gen Z homeowner, who will need 37.4% of their wages for their mortgage payment, home insurance, real estate taxes and more. However, San Jose is also where a Gen Z-er earns close to $1.3 million in their 20s, the highest average in the nation.

San Jose also tops the list of metros where Zoomers younger than 30 will pay the most on rent with costs at $296,000. San Francisco is a close second at $287,000. 

GenZ chart






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