Could Gen Z Embrace Alternative Homes?
Photo Nattanan Kanchanaprat from Pixabay
With the significant change in living arrangements becoming the norm, does van life and mobile living appeal to Gen Z?
Gen Z faces low wages, high interest rates, and political instability. Even a bachelor’s degree doesn’t guarantee security anymore. These are all symptoms of late-stage capitalism. Young people can’t afford homes. So what does a generation that has dreams and goals do when they want to live affordably and pursue their desires? They stop looking at traditional homes.
Wharton School of the University of Pennsylvania reported on Gen Z’s ability to afford housing. In recent years, there has been a notable increase in the proportion of young adults residing with their parents, a pattern reminiscent of the Great Depression nearly a century ago. This trend prompted Susan Wachter, a real estate and finance professor at the Wharton School, to delve into the underlying factors influencing this significant change in living arrangements among Gen Z and millennials.
The study, authored in collaboration with Arthur Acolin from the University of Washington and Desen Lin from California State University, Fullerton, tracked the rise of those living at home between 2000 and 2021. The causes? Declining housing affordability, elevated unemployment rates, and delays in marriage and child-rearing.
Recent census data underscores the scale of this phenomenon, with nearly half of individuals aged 18 to 29 currently residing with their parents, marking the highest level since the Great Depression era (1929-1941). Following the post-World War II economic surge, the proportion of young adults living with their parents plummeted to a low of 27% in 1960. However, since then, this figure has steadily climbed, reaching 40% in 2000, 47% in 2019, and 49% in 2021.
A recent Instagram post from the New York Times lists the cost of renting and buying homes in various US cities over the next decade for Gen Z. Based on this post, Gen Z is expected to spend over $200,000 over 8 years on rent alone in various cities such as Los Angeles, New York, Boston, and other major cities. These numbers nearly double the cost of buying homes in several Bay Area cities.
With all of these statistics, it’s clear that even renting a home has become a challenge for young people. The housing market favors high earners in densely populated parts of the country. The middle of nowhere is what Gen Z could probably afford and that isn’t ideal for people who need jobs or education.
What are the options besides renting an apartment or buying a home? There are a few notable ways to live affordably with a decent quality of life.
Van life has become a popular consideration for young folks. In an age where remote work is common and money is tight, the best option for solo youngsters is to consider life on four wheels. The idea of nomadic living has been a talking point for years now, with USA Today reporting on millennials living in vans back in 2019. Sentiments of saving money and pursuing passion projects were credited to not having high rent costs as a result of living on the road.
Jennelle Eliana is a Gen Z content creator who showed her van life to over 2.3 million subscribers. After living on the road for two years ago, Eliana was able to buy a home. Based on a report from Classic Vans, the cost of purchasing a home on wheels can range from $10,000 up to $200,000 depending on factors such as age, brand, and equipment of the van. The report highlighted the challenges and benefits of van life. The hurdles include having to park vans overnight and potentially paying for safer parking, maintaining the mechanical parts of the vehicle and costs of insurance. With these things in mind, it still ends up being exponentially more affordable than a traditional home.
This isn’t the only option for people. Anyone with access to Amazon can quite literally buy a prefab home for $20,000. These are pre-built homes that are simply unboxed and assembled using modular pieces. Newsweek reported on a viral TikTok user who purchased an Amazon house. While these structures would require land and potential permits, this option still ends up being affordable for a generation that feels inclined to live with their parents at home. An Amazon house can offer a semblance of privacy and independent living without all of the roadblocks such as loan approvals or moving costs.
Even though these options are not practical or commonly considered as legitimate housing, it’s a way for people to do something that many have been unable to do in this current economic state: save money.
Some don’t like the idea of moving out right now. Twenty-one-year-old college graduate, Ramzi Shaban, thinks living on the road might not be a great long-run solution to the current housing crisis.
“It’s hard for our generation to establish identity. A mobile home or camper van might make you stress over where you belong,” the San Jose State graduate said. “It’s obviously hard to live alone. I think our generation is confined to living with parents or roommates in order to save money.”
Gen Z could reasonably achieve the goal that other generations have been able to achieve — having some disposable income after every paycheck and not worrying about the high cost of living — despite the inflation and housing crisis.