Millennials To Spend More On Rent Than Their Predecessors
Top four cities where Gen Z are projected to spend the most money on rent are all in California
It’s no surprise that rent is more expensive for Millennials than it was for baby boomers.
But soaring rent costs will hit Generation Z the hardest, those born between 1998 and 2016, according to new analysis from HotPads, a Zillow Group site.
Even when adjusted for inflation, today’s youngest adults will spend more on rent in their lifetime than their predecessors, according to the report. Members of Gen Z will spend an average of $226,000 on rent before ever owning a home.
That tops older generations, surpassing the $202,000 Millennials will end up spending on rent, and the average $148,900 baby boomers spent on rent before becoming homeowners after adjusting for inflation.
But while Gen Z will spend more money on rent in their lifetime — paying a median of $1,710 a month — HotPads estimates the younger generation will be quicker to buy homes than millennials. Baby boomers spent an average of 10 years renting before buying, Gen Z will spend 11 years, and millennials will spend 12 years renting.