Tips: How Gen Z can make their American Dream a reality

Buying a home is all about financial readiness, Ryan McCallister, CEO and founder of F5 Mortgage, told Insurify. Whenever Gen Zers want to settle down, homeownership will likely make sense as the safe, long-term option. But he said that for many members of Gen Z, renting just feels safer right now.

“You should make sure that you can afford the mortgage and the other expenses that might come along with homeownership, along with taxes, upkeep, and repairs,” McCallister said. “It is a long-term commitment, and it is not at all something that should be rushed into.”

Learning financial literacy and knowing all the up-front and ongoing costs associated with renting or owning a home can help Gen Z renters determine what’s best for them. Having a reserve account to cover random repairs, unexpected life events, and cost fluctuations in property taxes or home insurance can set new homeowners up well, Alex McLagen, owner of McLagen Home Loans, told Insurify.

“Home prices are at all-time highs, everyday expenses keep climbing, and inflation has outpaced wage growth,” he said. “Even though Gen Z earns more than past generations at the same age, their money doesn’t stretch as far, making it harder to save, buy a home, and build long-term wealth.”

Gen Z renters face unique challenges on the path to homeownership — if it’s a path they choose to walk. While the high initial costs of homeownership may deter some, others may simply value the mobility that renting provides.

“Maybe [Gen Z renters] don’t need — or want — to buy at all,” Whitney Hill, CEO and co-founder of Snap ADU, told Insurify. “We also need to leave room for a changing dream. Homeownership isn’t the only, or even the best, path to financial security. Many Gen Zers value the flexibility of renting, especially as remote work and mobility expand their options.”

Hill said running the numbers backward from operating costs to financing options before starting to shop for a home can help Gen Z start budgeting as if they already own the home.

“Smarter paths forward do exist,” she said. “[H]omeownership isn’t dead for Gen Z, but it needs to be reimagined.”

Methodology

The proprietary data featured in this study comes from an online survey that Insurify commissioned. The survey respondents comprised 1,002 U.S. residents between 22 and 28 years old, including 450 who self-reported as renters. Respondents answered up to 20 questions about their views on renting and homeownership, among other topics. The survey fieldwork took place from June 4 to June 5, 2025.

To determine the monthly cost of homeownership versus renting, Insurify analysts used several datasets: the bottom-tier Zillow Home Value Index, property tax rates by state, proprietary home and renters insurance data, and the Apartment List Rent Estimates.^{[14] [15]}

Insurify’s team of data scientists analyzed millions of home insurance quotes from partner carriers and aggregated rate filings from Quadrant Information Services to determine average home insurance rates. Unless otherwise noted, rates in this report represent the average cost of an HO-3 insurance policy for homeowners with good credit and zero claims within the past five years, covering a single-family frame house with the following coverage limits: $200,000 dwelling, $25,000 personal property, $30,000 loss of use, $300,000 liability, a 5% wind deductible, 2% hail deductible, and a $1,000 general deductible. The 2025 prices reflect rates as of July 2025.

Insurify data scientists analyzed thousands of quotes from more than a dozen national renters insurance companies. Rates span all 50 states and Washington, D.C., and quote averages represent the median price for a given coverage level and geographic area. Unless otherwise specified, quoted rates reflect the median cost for 35-year-old tenants with no prior claims and good credit with a home construction year of 1980. Renters insurance rates represent the average cost of a policy with the following coverage limits: $15,000 personal property, $100,000 liability, $3,000 loss of use, and a $500 deductible.

Annual maintenance and upkeep costs are based on a 2% estimate of the home’s value, in line with industry recommendations of budgeting 1% to 4%.^[16]

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