The Rental Market is Hardest on Millennials
Most estimates say that it is wise to spend about 30% of your income on rent, but in today’s rental market, Millennials are undoubtedly struggling to hit that mark. According to data from RENTCafe, people ages 22-30 are having to spend roughly $93,000 on rent alone.
Defined as people with birthdates from the early 1980s to the early 2000s, Millennials became the largest living demographic in 2016 when they surpassed Baby Boomers. While Baby Boomers spent, on average, 36% of their income on rent, current prices, inflation and wages are causing Millennials to spend 45% of their income on rent during their 20s.
The younger segment of the cohort is being hit the hardest. For those renting between the ages of 22-30, they’ve already spent 44% of the income to keep their roofs over their heads as inflation rises more rapidly than wages. RentCafe surmises, “Gen Z-ers are expected to pay something in the vicinity of $102,000 while in their 20s just to put a rented roof over their head.”
For comments, questions or concerns, please contact Daniella Soloway
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