‘House Hacking’: A Growing Trend Among Younger Homeowners

According to a new report from Zillow, more that half of all homebuyers are considering renting out all or a portion of their home in an act called “house hacking” in order to produce additional income. 

Diving a little bit deeper, the Zillow survey showed that most Millennials (55%) and Gen Z (51%) homeowners find it very or extremely important to have the opportunity to rent out part of their home or amenities for extra income while living in it. These numbers are in comparison to 39% of all homebuyers, which is up eight percentage points over the last two years. 

Zillow's 2023 Consumer Housing Trends Report (CHTR) also shows that more than half of Millennial (59%) and Gen Z (54%) buyers say it's highly important to be able to rent out the entire home in the future, compared to 43% of all buyers.  

"Younger homebuyers—mostly Gen Z and Millennials—are especially into the idea of rental income as a key factor in their home buying decisions," said Zillow Senior Population Scientist Manny Garcia. "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's survey also further illustrates the disproportionate impact of the affordability crisis on households of color, while reinforcing that people maintain an unwavering desire to own a home regardless of market conditions. 

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

Click here to view Zillow’s research in its entirety.