Younger Buyers Look to ‘Hack’ Their Houses

Affordability concerns are everywhere in the nation’s many real estate markets, so is it any surprise that the youngest buyer cohorts are increasingly looking to rent out parts of their homes to make ends meet?

That’s what a new report released by listings portal Zillow last week purports to have found.

The company polled around 6,500 homebuyers across the country between April and July for its annual trend report on homebuying, and found that 55 percent of Millennial homebuyers and 51 percent of Generation Z buyers thought it was either “very important” or “extremely important” to have the ability to rent out part of their home to make money while still living in it – a practice beginning to be known as “house hacking” in some corners.

By comparison, on 4 percent of Baby Boomers and Silent Generation buyers thought it was an important ability, while 36 percent of Generation X buyers thought the same.

“For those first-time buyers navigating the ‘side hustle culture,’ where a regular 9-to-5 might not quite cut it for homeownership dreams, rental income can step in to help with mortgage qualification and smoothing out those monthly payments,” Zillow senior population scientist Manny Garcia said in a statement.

Latinx homebuyers prioritize the potential for rental income at a higher rate than other racial groups. Among Latinx buyers, 51 percent expressed interest in renting a portion of the home for additional income while residing in it, followed by 46 percent of Black buyers and 40 percent of white buyers.