Are Gen Z and Millennials the “Forever Renters”?
For years, the secret weapon behind many first-time homebuyer purchases was access to down payment gifts and assistance from family members. It seems in 2025, that safety net is slipping as fewer family members are able to step in and help. A recent survey shows that a shocking 82% of Gen-Z believe they'll never own a home due to affordability issues, and they are far more likely to rely on their own income and savings than on family for help. This shift could reshape demand in both the for-sale and rental markets.
Recent research shows that just 10% of all buyers and 25% of first-time buyers received help from family and friends when buying a home in 2024. That’s a sharp change from 2010, when 24% of all buyers and 36% of first-time buyers leaned on family and friends for support.
Among Gen Z and Millennial buyers specifically, a recent survey found that over half used their paychecks alone for a downpayment. On top of that, many younger households are juggling heavy student loan balances and rising credit card debt. According to a Clever Offer survey, 97% of Gen Z respondents said they felt there are barriers to homeownership. The most cited obstacles include:
- Rising cost of living making it difficult to save for a down payment (75%)
- High home prices (47%)
- Debt exceeding their savings (34%)
For SFR real estate investors, this should signal potential opportunities. Americans now need an income of roughly $117,000 to afford a median-priced home, which is almost 82% more than the income required to rent. This means fewer buyers will be able to buy a home, while rental demand has the potential to increase. With pending home sales down 1.3% year-over-year, as stated in this Realtor.com article, fewer home sales could create additional stress in certain markets, providing a window for investors to acquire properties at more favorable prices.
The drop in family-funded homebuyers has the potential to keep more households in the rental pool, even as housing inventory increases. For investors, that could mean a powerful combination: more tenants today and stronger buying opportunities tomorrow!
Owning a rental property can be a great source of additional income. Many owners look to owning a rental as a way to leverage or balance out their investment/retirement income. However, it also comes with the added responsibilities of property management, including upkeep, repairs and marketing. If you’re asking yourself “do I need a property manager?” — consider these eight benefits of using a property management company. A property manager will:
1. Screen out problem tenants
One of the biggest benefits of property management is that your property manager will handle tenant screening. Experienced property managers see hundreds of applications, so their trained eyes are more likely to notice potential red flags when reviewing an applicant’s paperwork. They’re quickly able to spot good tenant qualities, such as paying rent on time, taking care of the property and more. Letting them manage the tenant screening process will improve your chances of landing a reliable renter.
2. Act as the point of contact for tenant concerns
If something breaks at your property, it’s not always convenient or possible to drive over to the property to inspect it yourself (especially if it’s in another town or state). A property manager will address problems at all hours of the day and arrange for a service provider to repair or replace the item. Or, if you have a tenant who always seems to have a complaint — be it the noisy neighbor or the dog who relieves itself on the front lawn — you can breathe easy knowing that the property manager is the point of contact for those types of calls.
3. Market your rental
Property managers are skilled at rental marketing, including writing rental ads and taking quality and appropriuate photos. They also have local real estate knowledge and will be able to help you set a competitive rent price. Hiring a property manager with marketing experience can help fill your property sooner and reduce the time it sits vacant.
4. Decrease tenant turnover
Good property management companies know how to keep their renters happy. They are responsive and available, and they take care of problems when they arise. Happy renters are also less likely to look for another place to live and more willing to accept reasonable rent increases. Of tenants who choose to stay in their current lease, 50% think their home is a good value for the price and 40% say they love the place they rent.
5. Ensure rent is paid on time
Because property management companies deduct their fees from the monthly rent, they are motivated to keep those payments flowing in. Consistent rent collection is key to receiving rent payments on time, and using a property management company will help enforce lease policies if payments aren’t received. If tenants are consistently failing to pay rent on time (or at all), the property manager will know how to deal with the situation, including issuing an eviction notice if necessary. Payment collection can be a common issue — the typical renter spends 29% of their income on rent, and a significant share of rental households are one large expense away from being unable to pay3.
6. Avoid potential legal issues
Property managers understand landlord-tenant laws and fair housings laws, which can help you avoid potential lawsuits and save time, money and energy in the long run. They will also typically take care of any lawyer fees associated with evictions or property damage issues. If you’re not comfortable handling things like evictions, signing and terminating leases and handling rent and security deposits, you may need property management company expertise.
7. Save you money on maintenance and repair costs
Using a property management company may also come with discounts for maintenance services if the property managers work with a regular service provider or employ an in-house maintenance staff. They can perform regular inspections and find issues before they turn into bigger problems, which will reduce the number of emergency repair bills.
8. Reduce your rental headaches
If someone else is handling the daily management of your rental property and tenants, you’ll have fewer complications and commitments to worry about. If more time and less stress are key to your quality of life, using a property management company can be a great asset.
These are the benefits of property management. Investing in a rental property can contribute to your monthly cash flow and build long-term wealth — but day-to-day property management isn’t for everyone. If you just want additional income from rent and don’t want to be responsible for the details of your rental investment, consider all the property management benefits that you’ll receive for a percentage of your rental income.
Questions? We have answers. And we look forward to helping you..... We manage approximately 500 homes in the Denver-Aurora Metro Area and our inn is full! We have quality tenants looking for quality homes! We need your home to manage!
JUSTIN SADLER
Owner, Property Manager, Licensed Broker Associate, REALTOR®, Stars & Stripes Homes, Inc.
Talk/Text 303.506.9633 Justin@StarsAndStripesHomes.com
Bachelor Of Business Administration, Loyola Marymount University - Los Angeles
25+ Years Of Retail Management Experience
Member, National Association Of Realtors (NAR)
Member, National Association Of Residential Property Managers (NARPM)
Real Estate Investor, with 10+ Years of Property Management Experience. Justin originally hails from California; and manages a portfolio of 100+ rental homes. Experienced real estate investor and manager who serves home sellers and buyers. Justin's son served in the United States Army.
