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    renting vs owning

    Here's how much Gen Z Houstonians will have spent on rent before hitting 30

    Amber Heckler
    Apr 8, 2024 | 3:00 pm
    House fund, income, Gen Z, renting in Houston, renting vs owning, homeownership

    Gen Z will need a lot more than what's in this jar to pay their rent.

    Photo by Sandy Millar on Unsplash

    Gen Z adults have proven to be huge fans of moving to Texas, and they have a special appreciation for Houston in particular. Still, the price of housing in the city is taking a big bite out of their wallets.

    A new housing cost analysis from RentCafe, published March 26, has revealed Gen Z adults living in H-Town are expected to spend a total of $135,223 on rent by the time they are 30 years old.

    While the initial amount seems shocking, it really means Gen Z Houstonians will spend an average of $1,408.57 on monthly rent from the age of 22-29 years old, or about $16,903 a year, based on the report's findings.

    For comparison, millennials spent a good chunk less on their Houston rent during the same time period in their lives. The average rent cost for a millennial living in the big city came out to $123,000 by the time they were 30 years old. That amount can be extrapolated into a monthly rent cost of $1,281.25 (or $15,375 annually) from the age of 22-29.

    For the purpose of the study, RentCafe defined a Gen Z adult as a person who is born between 1996 and 2000. Millennials are defined as adults born between 1981 and 1996. The study examined the average amount of money each generation spent (or would spend) on renting versus owning, and the average total income earned during the same period. Data was calculated based on an eight-year period between the ages of 22 and 29 for each generation, and all costs and income were adjusted for the 2023 value of the U.S. dollar.

    Homeownership costs for Gen Z adults living in Houston
    RentCafe determined homeownership is also much further out of reach than renting for Houston-based Gen Z'ers. If a Gen Z adult (somehow) buys a house at age 22, they will have spent nearly $204,052 on homeownership costs by the time they're 30 years old (excluding the down payment).

    These findings show the difference between renting versus owning for Gen Z'ers in Houston is a whopping $68,829 gap.

    Using the same method from earlier, it can be presumed a 22-year-old Gen Z homeowner would be spending nearly $2,126 a month (or about $25,507 annually) to own a home in the Bayou City for the eight-year period until their 30th birthday. That includes the mortgage, fees, and insurance.

    For additional context, Houston-based millennials spent an average of $193,670 on homeownership by the time they were 30. That breaks down to $24,208.75 for eight years, or about $2,017.40 monthly.

    The difference between renting versus owning for millennials is $70,670, the report found.

    Total household income earnings by age 30
    By the time an Houston-residing Gen Z adult reaches their 30th birthday, RentCafe says, they will have earned a total household income of $495,619 for the eight-year period. This can be roughly calculated to about $61,952.38 in annual income during that time.

    Assuming a Gen Z adult rents for that entire period, they would be spending about 27 percent of their total household income on rent from age 22-29. If they own a home for the majority of their 20s, they would be spending about 41 percent of their total household income on homeownership.

    Meanwhile, millennials living in Houston were fortunate to earn much more than Gen Z'ers are making now. The report found that the average millennial Houstonian made $531,160 in total earnings by the time they reached age 30, or $35,541 more than Gen Z's total income. That would assume the millennial was making $66,395 a year while in their 20s.

    Millennials also fared better with their housing costs than Gen Z adults are now. Houston-based millennials who only rented from the age of 22-29 spent about 23 percent of their total income on rent, while millennial homeowners spent nearly 36 percent of their total earnings on their housing costs.

    The full report can be found on rentcafe.com.

    housinghousing costsreportsrentinghouston
    news/real-estate

    your friends and neighbors

    Pioneering East End development brings cohousing to Houston

    Jef Rouner
    Jul 7, 2025 | 12:15 pm
    Digital image of a a finished cohousing development with people in the foreground.
    Render provided by CoHousing Houston
    A digital rendering of the finished CoHousing Houston.

    Houston's East End neighborhood will soon welcome a bold new experiment in housing in the next couple of months, one dedicated to communal space and curing the epidemic of isolation plaguing modern America.

    Called CoHousing Houston, the development occupies a property at 114 Delmar St. that consists of 33, individually-owned units built around a central courtyard. This layout isn't much different from a modern apartment complex, but there are architectural deviations and governing principles that gently nudge the residents toward in-person interactions.

    One is the common house, a massive gathering space, kitchen area, and work station that serves as a community center and event hall. While the individual units do have their own kitchens and bedrooms, they are short on extra rooms. This encourages people to move their hobbies and activities to the common house or to the shared outdoor porches and balconies when the weather is nice.

    The idea of communal housing is as old as humanity itself and is practiced by groups as different as hippy communes and the U.S. Army. However, few Americans live in communal housing after they reach adulthood, preferring privacy and a large space to call their own. CoHousing Houston is aiming to be the best of both worlds.

    One resident is Kelli Soika, a married mother of three who lived in a similar cohousing unit in Colorado before moving to Houston in 2018. She found the cohousing model incredibly liberating, and worked to create the first one in the Bayou City.

    "You have this great place to solve problems you didn’t even know you know you had," she tells CultureMap. "I would have to go to the grocery store with the three kids, and it was hard. Now, I can ask a neighbor to watch the girls for an hour. I hear it’s like living in a small town in the past, though I'm not old enough to remember that. It's the kind of place where if you leave the door open, someone will check to make sure you're okay. In a regular house, you could fall down and it might be days before someone found you."

    Soika emphasized the power of community connection. Surrounded by multi-generational households that are funneled into the communal spaces by design, she can draw on the innovation of young couples or the wisdom of the elderly. With one kid starting college, it's nice for her to be able to talk to someone close by who has gone through the same thing. Her husband can drop into an evening bike riding group whenever he wants without having to arrange various schedules. In her opinion, little neighborly touches like that are worth the slight loss of privacy or space that are inherent to cohousing.

    "If the power is out and you don't know what’s going on at CenterPoint, you've got a group going through it with you," she says. "These things keep happening, and when I moved into cohousing, it's just not a crisis because you've got other people to help you and be with you in it."

    Isolation and loneliness is a major problem in America, studies suggest. Increased workloads and the explosion of social media have led to a sharp decline in time spent in "third places," locations that are not home or work. According to some estimates, people stopped going to third places as much as 37 percent between 2014 and 2017, and that was before COVID sent people into deeper isolation. In Houston, soaring temperatures and poor public transit keep some people out of parks and other outdoor activities even as the city invests heavily in park improvement. Some activities such as pickleball and live-action gaming centers have picked up the slack, but these still involve planning that many tired workers simply don't have the energy for.

    In that world, cohousing seems like a viable alternative to increase social engagement, though it may be too big a change for Americans, who are famously individualistic.

    Soika says that there are weekly meetings in the common house to deal with issues that affect the entire campus, such as parking disputes and insurance. Residents own their $300,000 to $525,000 homes, but there is still an HOA, and governance is democratic. CoHousing Houston tries to make sure that the majority of people can still attend and have their voices heard in the regular meetings. Those disinclined to group gatherings can still participate in small groups that handle specific matters, but like all democracy it involves more work than simply owning your own home. There's also the worry that such a governing structure tends to empower people who have time and resources to attend meetings, such as single income households.

    "You don’t want to have the decisions dominated by people who have managed to dominate the meeting structures," says Soika. "We have rounds where we laboriously go through each person and have them talk about it. It helps the quieter ones. We want everyone to be heard."

    Another concern is safety. Soika was unable to say of there was any kind of provision for what to do if a resident became a problem, such as exhibiting violent behavior against other residents.

    "I guess we would call the police," she says. Having lived in cohousing since 2012, she says she's never come across such a situation.

    CoHousing Houston is expected to open fully this fall. Soika already lives on site, and most of the units in the $300,000 range have been sold. Units in the $450,000-525,000 range remain available. Interested buyers can find more information at CoHousingHouston.com.

    homes-for-salecohousing houstoncohousing
    news/real-estate

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