Scroll through TikTok for five minutes and you'll find a 24-year-old walking viewers through their "six streams of income" spreadsheet, or a 26-year-old explaining how a rental arbitrage deal covers their own mortgage. This isn't a fluke of the algorithm. It's a generation-wide shift in how Gen Z thinks about work, money, and, increasingly, homeownership.
Gen Z — generally defined as those born between 1997 and 2012 — grew up watching millennials get priced out, laid off, and buried in student debt. Instead of writing off the idea of owning a home, many in this generation decided to build their own path to it: side hustles stacked on full-time jobs, creative financing, house hacking, and a willingness to co-buy with friends or family that would have been unthinkable to prior generations. The result is a housing market that's starting to bend around Gen Z's habits, expectations, and hustle.
This matters far beyond the buyers themselves. Sellers are marketing to a demographic with different priorities than the millennials and Gen Xers who dominated the last decade of transactions. Agents who understand what makes Gen Z tick are positioned to capture a wave of buyers who are, by most measures, more determined to own a home than the generation just ahead of them. Here's what the data shows, what it means for the housing market, and how it plays out specifically in Maryland.
Meet the Gen Z Homebuyer: Who They Are and What They Want
Gen Z is not a monolith, but a few themes show up consistently in generational housing research from groups like the National Association of Realtors, Bank of America, and Rocket Mortgage.
Compared to millennials at the same age, Gen Z buyers tend to:
- Start thinking seriously about homeownership earlier — often in their early-to-mid twenties rather than waiting until their thirties
- Prioritize owning as a long-term wealth-building tool over owning as a lifestyle milestone
- Rely more heavily on non-traditional income sources, including freelance work, content creation, resale businesses, and gig platforms
- Expect to use technology — from virtual tours to digital mortgage applications — as the default, not the exception
- Show more openness to starter homes, condos, and less conventional property types if it gets them in the door sooner
Surveys of young adults have repeatedly found that most Gen Zers still view owning a home as a core life goal and a marker of financial security, even as affordability has become harder. What's different is the timeline they're willing to accept and the lengths they're willing to go to shrink it. Rather than assuming a home will happen "someday," a growing share are actively building side income specifically earmarked for a down payment.
From Side Hustle to Down Payment: How Gen Z Is Funding Homeownership
Hustle culture gets a mixed reputation — critics call it burnout in disguise, and there's real truth to that concern. But for a growing number of Gen Z buyers, the side hustle isn't about grinding for its own sake. It's a deliberate strategy to close the gap between a starting salary and a down payment in an expensive market.
Common patterns show up again and again in how this generation stacks income:
- Content creation and social selling, turning platforms like TikTok, Instagram, and Etsy into part-time storefronts
- Freelance and contract work layered on top of a primary job, in fields like design, writing, tutoring, and consulting
- Resale and flipping, from thrifted clothing to refurbished electronics
- Rideshare, delivery, and task-based gig work for flexible, fast cash
- Property-based income, including renting out a spare room or a parking spot before ever owning a full home
For many, the goal isn't to replace a full-time income. It's to generate a dedicated, separate stream that goes straight into a house fund — untouched by everyday spending. Financial advisors who work with younger clients often describe this as one of the most disciplined savings behaviors they've seen in a generation, precisely because the money has a name attached to it before it's even earned.
House Hacking, Co-Buying, and Other Gen Z Workarounds for Affordability
If the traditional path to homeownership — save for years, buy a single-family home solo — doesn't fit an entry-level salary, Gen Z has shown a strong willingness to rewrite the playbook.
House hacking has become one of the most talked-about strategies among younger buyers: purchasing a duplex, triplex, or single-family home with a rentable accessory unit, then living in one part while tenants cover a meaningful chunk of the mortgage. It's a strategy long used by real estate investors, but Gen Z has popularized it as a first-time buyer move, not just an investment tactic.
Co-buying is another workaround gaining traction. Buying a home with a sibling, close friend, or romantic partner — often formalized with a co-ownership agreement — lets buyers combine two incomes and two down payments to qualify for more house, sooner. Real estate attorneys increasingly recommend clear written agreements covering exit scenarios, since these arrangements are still relatively new territory for a lot of buyers.
Family assistance also plays a bigger role than many assume. National surveys consistently show first-time buyers, especially younger ones, drawing on gifted or loaned down payment funds from parents or relatives at higher rates than in past decades — not because Gen Z is less independent, but because home prices have simply outpaced entry-level wages.
None of these are entirely new ideas. What's new is how openly Gen Z discusses them, normalizes them, and treats them as smart strategy rather than a fallback.
Rent vs. Buy: Why Gen Z Doesn't See Homeownership the Way Their Parents Did
Ask a Gen Z renter why they haven't bought yet, and the answer is rarely "I don't want to." It's almost always about math. Even so, the way this generation frames the rent-versus-buy decision looks different from prior generations.
Gen Z came of age watching rent climb every single year with no equity to show for it, which has made the "renting is throwing money away" argument land harder than it did with millennials, many of whom bought into renting as a lifestyle choice during the 2010s. At the same time, Gen Z is more comfortable renting longer than they'd like without treating it as failure — largely because they've seen peers do the same while building savings and credit in parallel.
A few patterns define this generation's mindset:
- Homeownership is viewed as a financial hedge against rising rent, not just a place to live
- Many are comfortable with a longer runway to purchase (renting into their late twenties or early thirties) as long as they're actively working toward a goal
- Location flexibility matters — remote and hybrid work has made secondary markets and more affordable metro areas legitimate options, not compromises
- There's less attachment to the "starter home you'll outgrow in five years" model, and more interest in a first purchase that could also double as an investment property later
The Affordability Gap: What's Actually Standing Between Gen Z and a Front Door
It would be a mistake to frame this purely as a story of grit and hustle overcoming all odds. The math is genuinely hard. Entry-level wages have not kept pace with home prices in most U.S. metros, student loan debt remains a drag on monthly budgets for a meaningful share of Gen Z, and mortgage rates well above the ultra-low levels of the early 2020s have added real cost to monthly payments.
The most commonly cited obstacles in generational buyer research include:
- Saving for a down payment while also paying rent, which functions as a form of double housing cost
- Student loan debt, which affects debt-to-income ratios lenders use to qualify buyers
- Limited inventory of entry-level homes, as starter-home construction has lagged behind demand for years
- Credit history gaps, since younger buyers have had less time to build the credit profile lenders look for
This is exactly why the workarounds matter so much. Side hustle income, house hacking, and co-buying aren't just interesting cultural trends — they're direct, practical responses to a set of financial obstacles that are real and well documented. Gen Z isn't ignoring the affordability crisis. They're building around it.
What This Means for Sellers in Maryland
For homeowners thinking about listing in Baltimore, Annapolis, Columbia, or the surrounding counties, Gen Z's growing presence in the buyer pool is worth paying attention to. This generation is drawn to homes that support their strategies, not just their aesthetics.
Sellers should keep a few things in mind:
- Homes with rentable potential — a finished basement with a separate entrance, an accessory unit, or a layout that supports a roommate setup — are increasingly attractive to buyers thinking in house-hacking terms
- Move-in-ready condition matters more, not less, since many Gen Z buyers are stretching every dollar toward the purchase itself and have less cushion for renovation costs
- Transparent, digital-first communication goes a long way — this generation expects online listings, virtual tours, and responsive digital communication as the baseline experience
- Proximity to transit and remote-work-friendly amenities (reliable internet, home office space) carries real value, since many younger buyers have more location flexibility than past generations
Maryland's proximity to major employment centers in Baltimore and Washington, D.C., combined with more affordable pockets in Harford, Carroll, and Frederick counties, positions the state well to capture Gen Z buyers who are willing to look slightly outside the most expensive core markets for a better entry point.
What This Means for Agents Serving the Next Generation of Buyers
Agents who want to build a lasting relationship with Gen Z clients need to meet them where their thinking already is. That means being fluent in concepts like house hacking and co-buying, not treating them as fringe ideas. It means being ready to walk a client through the numbers on a duplex purchase where rental income offsets the mortgage, or explain how a co-ownership agreement should be structured before two friends buy together.
It also means recognizing that Gen Z buyers often arrive at the first meeting having already done significant research. They've watched videos, read comment sections, and built spreadsheets. The agents who earn trust with this generation aren't the ones with the flashiest pitch — they're the ones who respect the homework already done and add real expertise on top of it: local market knowledge, financing options, and a clear-eyed read on which of their strategies will actually work in today's rate environment.
Why Work With Michael Frank at Frank Oliver Collective at eXp Realty?
Navigating a first purchase — especially one built around house hacking, co-buying, or a tight budget stretched by a side hustle — takes an agent who understands both the numbers and the nuance. Michael Frank at Frank Oliver Collective at eXp Realty brings 15+ years of real estate experience leading a team that has helped 500+ families across Maryland find their way to homeownership, backed by 200+ five-star Google and Zillow reviews and 100+ transactions completed each year.
The Frank Oliver Collective team includes specialists who work closely with first-time buyers, growing families, veterans and military relocation clients, investors, and luxury buyers alike, serving Baltimore, Harford, Anne Arundel, Howard, Prince George's, Montgomery, Carroll, and Frederick counties along with the surrounding Maryland communities. Whether a client is weighing a solo starter home, a duplex with rental income potential, or a co-buying arrangement with a sibling or friend, the team has the local market expertise to help structure the deal the right way from the first conversation to closing.
If you're a Gen Z buyer trying to figure out your path to homeownership — or a seller wondering how to position your home for this next wave of buyers — reach out to Michael Frank at Frank Oliver Collective at eXp Realty. Visit frankoliverco.com or email liv@frankoliverco.com to start the conversation.
Frequently Asked Questions About Gen Z and Homeownership
Is Gen Z actually buying homes, or just talking about it online?
Yes — while Gen Z represents a smaller share of the market than millennials simply because of age, first-time buyer data consistently shows meaningful and growing Gen Z participation. Many are entering the market earlier than millennials did at the same age, often using side income and shared-ownership strategies to get there sooner.
What is house hacking and why is it popular with Gen Z?
House hacking means buying a property — often a duplex, triplex, or home with an accessory unit — and renting out part of it to offset the mortgage. It's popular with Gen Z because it turns a single purchase into both a home and an income stream, making an otherwise unaffordable payment manageable on an entry-level salary.
Can friends or siblings legally buy a house together?
Yes. Co-buying with a friend, sibling, or partner is legal and increasingly common. Buyers typically hold title as tenants in common and should sign a co-ownership agreement covering ownership percentages, monthly cost splits, and what happens if one party wants to sell or move out.
How is Gen Z affording down payments with entry-level salaries?
Many combine dedicated savings from side hustles (freelance work, resale, content creation, gig work) with family gift funds, first-time buyer assistance programs, and, in some cases, co-buying arrangements that split the down payment between two or more people.
Does hustle culture actually help Gen Z buy homes, or is it overhyped?
Both can be true. Side income genuinely accelerates savings timelines for many young buyers, but it isn't a substitute for the structural affordability challenges — high home prices, student debt, and limited entry-level inventory — that make homeownership harder for this generation than it was for their parents.
Is Gen Z more interested in renting or buying long-term?
Most surveys show Gen Z still views homeownership as a major long-term goal and a financial priority, not a rejection of the idea. What's shifted is patience with a longer timeline and comfort with non-traditional paths to get there, rather than a belief that owning a home isn't worth pursuing.
What should sellers know about marketing to Gen Z buyers?
Highlight rentable potential (finished basements, accessory units), move-in-ready condition, and strong digital listings with virtual tours. Gen Z buyers research extensively online before ever contacting an agent, so a well-documented, transparent listing builds trust early.
Are Gen Z buyers looking at different neighborhoods than millennials did?
Often, yes. Remote and hybrid work has given many Gen Z buyers more geographic flexibility, making secondary markets and more affordable counties legitimate first-choice options rather than compromises, especially when paired with a reasonable commute to a regional job hub.
What financing options should first-time Gen Z buyers ask about?
First-time buyer programs, low-down-payment conventional loans, FHA loans, and VA loans for eligible military members and veterans are all worth exploring. A local lender or agent can help match the right program to a buyer's specific income situation, including non-traditional or gig income.
How can a real estate agent help a Gen Z buyer who has a side hustle or freelance income?
An experienced agent works with lenders who understand how to document and qualify non-traditional income, helps buyers understand what will and won't count toward mortgage approval, and can advise on strategies like house hacking or co-buying that make the numbers work sooner rather than later.
The Bottom Line
Gen Z isn't opting out of homeownership — they're re-engineering the path to it. Side hustles that once looked like a burnout symptom are, for many young buyers, a deliberate down payment strategy. House hacking and co-buying aren't corner-cutting; they're creative responses to a genuinely difficult affordability environment. And that combination of determination and flexibility is starting to reshape what both sellers and agents need to understand about the next wave of buyers.
Whether you're a Gen Z buyer building your own path to a front door, or a Maryland homeowner wondering how to position your property for this generation, the conversation starts with the right guidance. Reach out to Michael Frank at Frank Oliver Collective at eXp Realty at frankoliverco.com or liv@frankoliverco.com to talk through your next move.
