Nearly half of all renter households are burdened by rent costs, with Gen Z renters carrying the greatest burden, according to a data analysis report by Zillow (NASDAQ: Z, ZG) and its StreetEasy brand.
The new data analysis, which is based on the US Census Bureau’s 2022 American Community Survey, found three in five Gen Z renters (ages 18-25) spend more than 30% of income on housing expenses – and that share is higher in 21 of the country’s 30 largest metro areas. But Zillow noted that while 58.6% of today’s Gen Zers are rent burdened, that financial pain among young adults peaked at 62% in 2011 before declining to 55% by 2019. The trend reversed in recent years due to a growth in pandemic-era rental demand that was not supported by the proper supply of this type of housing.
“The experience of struggling to pay rent on an entry level salary is familiar to so many of us that it’s almost become normalized in our society,” said StreetEasy Senior Economist Kenny Lee. “But this is something that should not be normal. Rent burden makes it a struggle for these young adults to afford the other expenses in their lives – things like student loans and medical payments. It’s deeply damaging to their ability to save for future life goals, like one day owning a home.”
“While these large metropolitan areas may be known to have more expensive housing, we have to recognize that they’re also where the jobs are,” added Zillow Rental Trends Expert Emily McDonald. “For many Gen Z renters, choosing to live in a less expensive city may come at the expense of their career, which is why it’s so necessary we find ways to make living in these areas more affordable for young adults.”
;
Maybe it’s me, but I had a roommate when I was young and on a starting salary. Sometimes, I think we are just babying this generation to the point that they will become dependent on the government to make everything alright for them. People NEED TO REMEMBER that you have to WORK for the American Dream. It’s not handed to everyone on a silver platter. Granted, I am a Boomer, but we worked for what we have now. We worked HARD for it!!!
Exactly!! Couldn’t have said it better.
Completely agree! I’m Gen X and I think there’s way too much codling of this generation. We didn’t take vacations, get our hair colored, have someone paint our nails. AND our first place wasn’t anything fancy. It was a stepping stone. This generation is flashy and wants to start at the top. That’s not how it works.
When I was this age I had 3 part time jobs trying to build up my career experience and resume. I also had a roommate. We just did what we had to do. Work ethic has changed substantially for sure. Decreased dramatically.
FHA debt ratios are 29 and 41 if I remember correctly. I have been showing a young couple home and they have 2 nice vehicles with payments and are on subsidized rent. They don’t want to make more money as they will loose subsidy. But their car payments are reducing what they can afford. We always limited ourselves to one nice vehicle, as car payments goof up debt ratios when you are young. I will say it would have been helpful if the Student loan bailout was instead a student loan interest rate cap for everyone, so everyone with student loans would have been helped.
(I don’t know many people who didn’t struggle with rent when thrust into the adult world. Most had roommates and had to pinch pennies for a few years until salaries improved. I lived in a rented house with four other friends for a year until I could afford to live on my own. “Everything old is new again” says it all.
Oh, and my first job was with the local government and only paid $7500 a year. Scary, huh!
Rent and all housing has gone up. As a College Grad in 79 my pay was about 9k a year, rent the 614 for 1 bedroom. People should not expect landlords to reduce rent when landlord expenses make up bulk of costs. The expense of non payment impacts these people. It is not one sided.
Kamala has the answer, just offer a rediculous amount of money to first time homebuyers and continue the process of devaluing our dollar. Sorry, that does not make sense Kamala. I totally love the hard work comment. So true. Vote Trump if you don’t believe in the hand outs that drive inflation.
Cost of living in most parts of the country more than exceed earnings. It’s not just about rent. Try inflation on utilities, food, gas, and insurance. Pay has not kept up nearly enough for most Americans due to government corruption and corporate greed for profits and our never ending of bailing out other countries and supporting nonsense wars which tax payers flip the bill for. Let’s not forget welcoming of any an everyone who wants to come to America that also takes more money out of the pockets of our legal citizens.
LOL, “Rent burdened?” How do the communists come up with all of these phrases to use in their grooming of young people? The same communist Democrats who are providing “free” housing and tens of thousands of dollars to 30 million illegal voters are telling Americans they are “rent burdened.” The solution to all of our problems is defeat the Democrats. Everywhere. Like it’s 1865 again. Make living affordable and healthy again.
I am not sure what rent burden stress is about. My wife and I raised four kids and worked several jobs each for a long time just to make ends meet. I remember quite often getting just a couple of dollars of gas on Wednesday or Thursday to try to make it until payday on Friday. We rented 6 houses before buying our 986 sq. ft. starter home and were having to grow our own vegetables to reduce food costs so we could afford the house payments. We had no destination wedding and didn’t know where any of the good restaurants were. McDonald’s once a week was a treat. I thought struggling financially just starting out was normal. I didn’t like it but I didn’t stress, I worked harder.
I worked from the time I was 14!
My first home was a small 8×35 trailer! It was my starter home!
Todays GenZers want it easy!
Work hard when your young! Enjoy being out there helping people at whatever job you have & start planning for the future! Attitude is everything! Don’t depend on handouts! Independence is freedom!
Another useless study. Please. People get your butts to work and pay your bills.
I’m torn.
Inflation is a regressive “tax” that hurts the young & old, the poor and middle class way more than established families with options.
The young attitude is part of the problem, shifting from Boomer’s “ask not” to the new paradigm “get mine” dependent on government.
Yet the Dems continue to give away money they don’t have, causing inflation and worsening the issue for everyone. Look at Venezuela or Turkey, etc.
Trump reduced the sanctions on Russia during his term allowing Putin to build resources to be able to invade Ukraine. He’ll placate the Bully and “stop the war” at a cost of a third of their country. Then they’ll hate us too and the Bully won’t stop.
Romney was right.
WW3 or economic collapse?
Some choice.