Nearly half of U.S. renter households are rent-burdened, and Gen Z Rental households were shown to bear the heaviest burden. Nationwide, three in five Gen Z renters (ages 18 to 25) spend more than 30% of their income on housing. In 21 of the country’s 30 largest metros, the share is even higher. For example, in San Diego, Los Angeles, and Sacramento, nearly three-quarters of Gen Z renters are rent-burdened.
MORE NEWS: Here’s how much Arizona single-family rental prices have gone up
Today’s situation for Gen Z is similar to what Millennials experienced a decade ago, only slightly better. In 2012, 60.2% of Millennials nationwide spent more than 30% of their income on rent. Young people’s rent burden peaked at 62% in 2011, but steadily declined to 55% by 2019. But the trend has reversed in recent years, as a post-pandemic surge in rental demand and decades of undersupply led to steep rent increases across the country. country.
“The experience of struggling to pay rent on an entry-level salary is familiar to many of us and has become almost normalized in our society,” said Kenny Lee, senior economist at StreetEasy. “But this should not be the norm. The burden of rent is making it difficult for these young people to cover other expenses in their lives, such as student loans and medical bills. This is severely damaging their ability to save for future life goals, such as having a child.”
In 17 of the nation’s 30 largest metropolitan areas, Millennials in 2012 were more likely than Gen Z to experience rent burden in 2022. However, the improvement was slight. In each of these 30 metro areas, at least half of Gen Z renters are rent-burdened. Over the past decade, the largest decline in rent burden among young people was in Austin (-9.5%), while the most dramatic increase was in Houston (11.9%).
“While these metropolitan areas may be known for their high housing prices, we have to recognize that they are also places for employment,” said Emily MacDonald, rental trends expert at Zillow. . “For many Gen Z renters, choosing to live in less expensive cities can come at the expense of their careers. That’s why we’re finding ways for young people to live more affordably in these areas. It is very necessary to find out.”
Zillow and StreetEasy tools
Zillow and StreetEasy have many tools to help renters access affordability.
The initial cost of finding a place to rent can be high, and Zillow research shows that renters of color tend to face higher costs. In New York City, initial costs average about $10,500, with agent fees often being the largest expense. Lowering the upfront cost of a rental would give all New Yorkers more choice in the rental market, which is one of the reasons Zillow and StreetEasy are advocating for brokerage reform.
All rental properties on Zillow are designed to help renters better understand affordability by highlighting one-time costs such as application fees and security deposits, as well as recurring costs such as parking. Includes a breakdown of costs and fees. While the typical renter pays a $60 application fee nationwide for every rental they apply for, Zillow’s rental application allows renters to rent participating rentals on Zillow for a flat fee of $35 for 30 days. You can apply for an unlimited number of applications.
Zillow’s rental listings also include rental rooms (units or individual rooms in a home), making rentals more affordable online. Renters using Zillow can now include “Rooms” listings in their searches alongside the traditional “Entire Location” option.
Metropolitan area*Gen Z total
renter
household
(2022) Generation Z median
Annual total sales
Income (2022) Gen Z Median
total rent
(2022) Rent burden ratio-
Generation with heavy burden
Z (2022)Rent percentage-
heavy burden
Millennials (2012) United States5,233,773$42,000$1,41558.6 %60.2 %San Diego, California50,018$55,000$2,14873.4 %66.9 %Los Angeles, California135,094$58,000$2,05071.7 %71.2 o, Canada31,669$51 ,708$1,83571.0 %67.9 %Orlando, FL 43,727$46,848$1,66668.9 %74.9 %Miami, FL51,910$50,000$1,80867.7 %64.8 %Tampa, FL44,256$47,679$1,53067.1 %68.4 %Houston, TX12 2,792$38,457$1 ,22566.2 %54.3 %New York City**122,119 $63,257$2,19065.6 %67.0 %San Antonio, TX45,548$37,100$1,21565.5 %58.5 %Washington, DC80,812$62,501$1,95064.4 %59.6 %San Francisco, CA50,337 $70,000$2,33363.5 % 64.2%Atlanta, GA79,916$55,000$1 ,65862.8 %61.9 %Riverside, CA33,284$54,000$1,69662.0 %66.7 %Minneapolis, MN65,518$42,090$1,37061.8 %56.2 ,CO53,909$60,000$1,73061.1 %54.6 Baltimore34,553$47,382$1,48061.0 %61.4 %Dallas, TX143,772$48,000$1,44460.4 %55.1 %Cincinnati, OH42,134$34,614$1,04160.4 %59.8 %Boston, MA 73,3 21$67,000$2,13059.7 %58.2 %Austin, TX72,975$45,000 $1,41559.6 %69.2 %North Carolina Charlotte, WA47,708$46,288$1,35859.6 %63.0 %Philadelphia, PA84,624$46,947$1,42058.1 %61.1 %Seattle, WA81,601$65,04 8$1,84658.0 %59.7%Portland, OR38, 752$58,006$ 1,62057.1%61.7%Michigan Detroit, State44,249$45,015$1,18057.1 %58.4 %Chicago, Illinois130,472$47,513$1,37756.9 %59.5%Phoenix, Arizona88,933$59,190 $1,62355.0 %64.2%Kansas City, Missouri47,972 $41,000$1 ,15352.8 %53.3 %St.Lewis, Missouri46,325 $38,431$1,02050.4 %57.8 %Pittsburgh, Pennsylvania33,760$40,000$1,08049.8 %55.4 %
Source link
