Keys, Roommates, or Rent-Free? A Real Talk on Housing Decisions for Gen Z and Gen Alpha.

Alex had just landed his first full-time job out of college- remote, decent pay, and the kind of freedom that made him feel like real adulthood had finally arrived. So naturally, the next question was: Should I buy a house? 

Some of his friends were signing leases with roommates. One friend just bought a condo with help from his parents. Another was staying in his childhood home while saving aggressively and paying off debt. Alex felt caught in the middle, unsure of what “the smart move” actually looked like. 

It is a common crossroads for Millennials, Gen Z, and soon, Gen Alpha: do you jump into homeownership while rates are high but rents are rising faster? Do you grab a roommate and move downtown for the lifestyle? Or do you grit your teeth, stay with your parents, and bank every extra dollar while you can?

Here’s a tip: the best decision is not the most glamorous one- it is the one that builds your long-term freedom. 

Let’s break it down: 

Option 1: Buying a home early

Pro: You start building equity, which is money you get back and more when you sell someday, long into the future. 

Con: Down payment, closing costs, maintenance, and the risk of locking yourself into a location or lifestyle you are not ready for. 

If Alex had purchased a starter home at 23 with a $20,000 down payment and monthly costs of $2,200 (including mortgage, taxes, and insurance), he could potentially see that property appreciate 3% annually. In five years, they might sell and walk away with more equity, all while having lived there. 

Also, he had to handle repairs, homeownership stress, and less flexibility to move for a new opportunity. 

Option 2: Getting a roommate and renting

Pro: You learn independence, manage shared costs, and get the lifestyle you are likely craving. 

Con: You are building no equity, and rents are rising fast. 

If Alex split a $2,000 a month apartment with a roommate, his cost is $1,000/ month- $12,000 a year without keeping any of it. 

Still, this could be a great move if Alex is unsure about his career path, location, or if he just wants to enjoy a few years of freedom before settling down. That flexibility has real value. 

Option 3: Living at home (temporarily and intentionally)

Pro: Lowest living cost equals maximum saving opportunity. 

Con: It requires discipline and clear boundaries to make it work without getting too comfortable. 

If Alex lived at home for just two years and saved the $1,200 a month he would have spent on rent, he would bank $28,800- without even factoring in investment growth. That money could become a strong down payment or a safety net. 

One of our clients stayed home for 18 months after graduating from college, aggressively saved and invested $30,000, and then bought a duplex at 24. She lived in one side and rented the other- essentially living rent-free while building wealth. By 30, she had two properties and zero student debt. 

So what should you do? 

There is no “one-size-fits-all” path. But if you want to gain financial traction early, ask yourself: What do I value most right now- freedom, stability, or flexibility? 

Want help thinking it through? Let’s create a strategy that aligns with your life stage, income, and goals- before you sign a lease or a mortgage. Your future self will thank you.