Source: Redfin —
Young adults taking on a new lease are getting some relief as rental price growth slows, helping cool their personal inflation rates.
Gen Z and millennial renters have lower personal inflation rates than the overall U.S. population for the first time since the end of 2020. Gen Zers and millennials who signed a new lease in December saw their cost of goods and services increase 5.6% and 6.1%, respectively, compared with a 6.5% increase for the typical American.
That’s a welcome shift for young renters, who saw their personal inflation rates soar last year as rental prices skyrocketed.
This is based on a Redfin analysis of the cost of goods and services for Gen Zers and millennials based on their spending habits, as measured by the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI). The analysis, which incorporates Redfin’s data on asking-rent prices, weighs each component of inflation–including food, fuel, shelter and other variables–to come up with inflation rates for millennials and Gen Zers who are taking on a new lease. Adult Gen Zers are 18 to 26 years old, and millennials are 27 to 42 years old.
This also marks the first time since the start of 2021 Gen Zers overall have a lower personal inflation rate than the U.S. population, a shift that’s largely due to rental price growth slowing. The personal inflation rate for Gen Zers overall, taking both renters and homeowners into account, came in at 6.4% in December. Millennials, at 6.8%, still have a higher rate than the general population.
