A new report has confirmed what most Houston-based Gen Zers already know: Homeownership rates aren’t looking good for the Zoomer generation. In fact, an overwhelming majority of all Gen Zers in the Houston metro are renters, according to a new Rentcafe study.

Out of the 189,398 Gen Z households in the Houston area, about 14 percent of them are homeowners, and the remaining 86 percent rent. That makes Houston the No. 25 trending metro area for Gen Z renters nationwide.

The housing report analyzed the U.S. hotspots where Gen Zers (individuals born between 1997 and 2012) are renting versus buying their homes. Using homeownership and renting data across 97 U.S. metros, RentCafe’s analysts determined which cities have had the biggest gains in Gen Z renters and homeowners from 2018-2023.

Houston also ranked No. 25 in the national comparison of metros where nearly all Gen Z individuals rent. The study’s findings show there were 162,305 Gen Z households who were renters in 2023.

The prevalence of Gen Z renters in the Bayou City has skyrocketed over the last several years, as they've gotten old enough to move out of their parents' homes; there were only 21,639 Houston-area Gen Z renter households in 2018. During the same five-year period, the rate of Gen Z homeowners in Houston grew from 3,175 to 27,093 households.

Unsurprisingly, affordability is one of the biggest hurdles that the younger generation faces when it comes to homeownership. But a separate housing affordability report found Houston home prices are starting to cool off after a two-year price surge, which could bring relief to homebuyers of all ages. According to the latest market insight from the Houston Association of Realtors, February median housing prices have dipped to $322,078, their lowest level in two years.

RentCafe adds that metros with good job opportunities (and good pay), recreational activities, and good schools are top-of-mind for Gen Zers that want to settle down in one place.

“And it’s not just the big coastal cities that offer these things,” the report’s author wrote. “While major hubs like New York City and Boston still attract Gen Z renters, the real growth is happening in the South.”

Gen Z renter and homeownership rates in other Texas cities
The meteoric rise in Gen Z renters is not just happening in Houston — every major city in Texas is seeing similar shifts in their renter populations.

Austin has the second-highest share of Gen Z renters in Texas, and it ranked No. 6 among U.S. metros where nearly all Gen Zers are renters. A surprising 91.56 percent of all Gen Z individuals living in the Austin area rent, and only 8.44 percent are homeowners. Out of the total 102,323 Gen Z households living in the metro, 93,687 are renters, while the remaining 8,636 own their homes.

Dallas-Fort Worth has the highest number of Gen Z renters in the state, at 189,461 households, and only 25,002 Gen Zers own homes.

San Antonio, on the other hand, is home to one of the highest rates of Gen Z homeowners in the state. About 20 percent of Gen Z San Antonians are already homeowners, while the remaining 79.57 percent are renters. That adds up to about 13,862 Gen Z homeowners, and 53,998 renters.