Gen Z and millennials delay life plans, prioritize essentials over luxury in rentals
Renter Priorities Shift in 2026 Market
KEY TAKEAWAYS
- 86% of Gen Z and millennial renters have delayed major life milestones due to rising housing costs.
- Renter priorities focus on essentials: in-unit laundry, pet-friendly policies, and central AC top the list.
- Almost half would relocate—across city, state, or country borders—for more affordable rent.
- More than half see Airbnb-friendly rentals as a strategy to boost income and flexibility.
Affordability Reshapes Life Plans
Rising housing costs in 2026 have forced renters to rethink their priorities. Apartment List did a survey of 1,000 Gen Z and millennial renters which showed that many delay key life events. Homebuying, retirement savings, and starting families are now on hold for much of this group.
Nearly half can’t save because rent takes up most of their income. One in four spends over half their earnings on housing. Financial pressure also affects relationships. About 42% stay in partnerships longer to avoid the high cost of moving out.
Suburban Aspirations and Changing Needs
Urban living may dominate headlines, but many renters still want the suburban dream. About 44% of respondents say they aspire to the suburbs, even if they’ve paused that goal. Space now outweighs proximity for 53% of renters.
Still, walkability remains a top feature, especially for Gen Z. While 87% want to own a home one day, 57% lack savings for a down payment. Renting remains a strategic and necessary choice in today’s market.
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Essentials Over Extras
Renters now prioritize practical features over luxury amenities. In-unit laundry, pet-friendly policies, and central AC rank highest. Extras like rooftop pools or premium finishes fall lower on the list. Smart home features and utility efficiency also factor into decisions, reflecting how tech-forward expectations are shaping the rental experience. Pet ownership plays a key role in rental choices. About 63% of renters have pets, and strict pet rules often deter them from certain units.
Mobility and Financial Flexibility
Renters are willing to move for affordability: 48% would switch cities, 45% states, and 24% would even relocate internationally for lower housing costs. Flexible and remote work arrangements make such moves feasible. Many are also monetizing where they live, with 56% open to listing their home for short-term rentals—turning their lease into an income generator and aligning housing with today’s gig economy.
Renting as an Active Strategy
For Gen Z and millennials, renting in 2026 isn’t a fallback; it’s a considered plan. As priorities shift in response to economic pressures, these renters are redefining milestones, focusing on flexibility and essentials, and making intentional moves to retain financial control in an unpredictable market. Renter priorities now reflect a blend of pragmatism, resourcefulness, and adaptability, setting the tone for the housing industry’s near future.
Source: CRE Daily
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