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

Out of the 102,323 Gen Z households in the Austin metro, about 8 percent of them are homeowners, and the remaining 92 percent rent. That makes Austin the No. 6 U.S. metro where nearly all Gen Zers rent.

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.

Austin ranked No. 41 in the national growth rate comparison of "trending" metro areas for Gen Z renters. The study’s findings show there were 93,687 Gen Z households who were renters in 2023.

The prevalence of Gen Z renters in Austin has skyrocketed over the last several years, as they've gotten old enough to move out of their parents' homes; there were only 13,696 Austin-area Gen Z renter households in 2018. During the same five-year period, the rate of Gen Z homeowners grew from 818 to 8,636 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 Austin 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 Austin Board of Realtors, February median housing prices in Travis County have dipped two percent year-over-year, to $489,900.

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 Austin — every major city in Texas is seeing similar shifts in their renter populations.

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.

In Houston, 162,305 Gen Z households are renters and 27,093 are homeowners. That means about 86 percent of all Gen Z households rent, and 14 percent 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.