SANTA BARBARA, Ca. — A new study from RENTCafé looks at how much each generation spent on rent between the ages of 22 and 30.
The amount each cohort paid on rent before turning 30 increased by $5,000-$8,000 each decade. At this growth rate, Generation Z will be paying a staggering $102,100 by the time they turn 30. Moreover, if their income won't keep the same pace with rent growth, the so-called internet generation will be the most rent-burdened in US history.
Millennials pay a whopping $92,600 in total rent by the time they turn 30, more than what their Baby Boomer parents paid by the time they hit the same age. It seems that Millennials do put a massive amount of money into renting, but the numbers also show that their total median income is the highest among generations, earning about $206,600 in 8 years. However, they spend 45% of this income on rent between the ages of 22 and 30, which is more than the recommended 30%. In fact, none of the two previous generations managed to keep the rent burden under 30% with Gen Xers witnessing a rent burden of 41% and Baby Boomers of 36%.
Read the complete study here.