Gen Z’s introduction to financial independence has been full of turbulence. While the generation entered adulthood in a strong job market, they quickly faced the economic shock waves of the pandemic and its subsequent inflation. Seventy-three percent say the economic environment has made it more challenging to save, and 75% are seeking ways to earn additional income, according to a study from Bank of America. Three in five Gen Z renters also report being rent burdened.

Despite earning less and using more debt than millennials at the same age, Gen Z remains proactive, actively pursuing financial education. Their experiences are shaping their financial behaviors and influencing future economic trends as they become a significant part of the renter population.

According to the results of the Zillow annual renter survey, which covers renters of all generations, here are three Gen Z trends you need to know going into 2025.

One in Four Renters Is Generation Z

Despite the quips about Gen Z living with their parents, the cohort accounts for 25% of all renters in the United States. That's the second largest percentage after millennials, who represent nearly a third of all renters. But Gen Z is less likely to report being a household decision-maker. Just 12% of respondents said they consider themselves head of the rental household they live in.

Gen Z Accounts for Nearly Half of New Renters

Gen Z comprises 47% of recent renters, defined here as those who moved in the last year. As they find their footing in a post-pandemic economy, Gen Zers are moving into rental arrangements at much higher rates than any other generation. Millennials made up just 28% of recent renters, and Gen X and baby boomers came in a distant third and fourth, at just 12% and 11%, respectively.

Gen Z Renters Are More Likely to Consider Buying

While Gen Z renters have seen their share of economic roadblocks, many remain focused on homeownership. Sixty-four percent of Gen Z renters said they’d be “very or extremely likely” to buy a home if mortgage rates fall. Many strongly considered it: 27% said they “seriously considered buying” during their last rental search.

Millennials came in a close second on this metric, with 63% reporting that they considered buying, while just over half of Gen X (53%) and about a third of boomers and the silent generation (33%) said the same. While this sentiment is down from last year for all generations, mortgage rates are widely expected to continue dropping into 2025.

Given the persistent affordability challenges to homeownership and the housing deficit—Zillow economists estimate that 4.5 million new homes will be needed to meet demand—Gen Z will likely make up a significant portion of the renter demographic for years to come. Focusing amenity design and messaging that convey value could resonate with Gen Z renters.

This message matters to other generations as well. When asked what home characteristics they’re most likely to consider highly important, renters of any age have consistently said that staying within their initial budget is highly important. A near-unanimous share of renters (95%) said they consider staying within their initial budget as “essential.”

To get more insights on renters of any generation, get your copy of Zillow’s 2025 Rentals Consumer Housing Trends Report.