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Rentals: Which generation of tenants is most affected by high prices? - La Nacion Propiedades
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www.lanacion.com.ar
December 10, 2024
An analysis of Census Bureau data found that while Gen Z definitely has a rental burden, millennials may have had it worse
By Matt Yan
Millennials and Generation Z prefer the home officePixabay
Earlier this year, The New York Times reported that Gen Zers (people born after 1997) have become the generation driving the most demand for rentals , replacing millennials (those born between 1981 and 1996), who are slowly making the transition to homeownership. You might think, given the post-pandemic housing crisis in the United States , that Zoomers would also be more burdened by rent than their predecessors were a decade ago. But a new report reveals that millennials actually had it worse .
The report, from Zillow and its New York City brand StreetEasy, analyzed data from the U.S. Census Bureau’s 2022 American Community Survey and found that nearly half of all American renting households were burdened by rental costs , “with Gen Z renters bearing the heaviest burden .”
But while 58.6% of Gen Z renters nationwide were rent burdened in 2022 , 60.2% of millennials experienced rent burden at the same age in 2012 . The report defined “rent burden” as spending more than 30% of income on housing expenses. It compared renters ages 18 to 25 in 2012 and 2022, excluding renters who were not working.
Generation Z is overwhelmed by paying rent Shutterstock - Shutterstock
While more recent data was not available, the comparison is notable because the U.S. housing shortage “has only gotten worse,” said Kenny Lee, a senior economist at Zillow and StreetEasy. As of 2022, there were about 5.2 million Gen Z households renting in the U.S. With a median annual gross rent of $16,980 and a median annual gross income of $42,000, they were spending about 40% of their income on rent .
“Low inventory really makes it difficult for local housing markets to find a balance between supply and demand,” Lee said. “That puts a bigger burden on young adults , who often have lower incomes because they’re still early in their careers.”
But while the pandemic put a wrench in Gen Z renters’ lives , it wasn’t as severe as the housing crash of 2008 and 2009. Lee said the share of young adults burdened by rent peaked in 2011 , at 62% . The following year, 60.2% of millennials were still spending more than 30% of their income on rent, but it gradually declined from there, to 55% in 2019. It rose again as surging demand after the pandemic, coupled with decades of insufficient supply, “ led to sharp rent increases across the country ,” the report said.
The proportion of young adults burdened by rent peaked in 2011
As always, the numbers vary by region , even within states. The share of renters experiencing rent burdens in Austin , Texas, fell 9.6% between 2012 and 2022 , while in Houston it rose 11.9% . And in California , some Gen Z renters were more rent-burdened in 2022 than millennials, with three cities topping the national list : San Diego , where 73.4% of Gen Z renters were rent-burdened, followed by Los Angeles (71.7%) and Sacramento (71%).
www.buysellba.com
Source:
Alquileres: cuál es la generación de inquilinos más afectada por los altos precios
Un análisis de datos de la Oficina del Censo encontró que, si bien la Generación Z definitivamente tiene una carga de alquiler, los millennials pueden haberlo pasado peor
www.lanacion.com.ar
December 10, 2024
An analysis of Census Bureau data found that while Gen Z definitely has a rental burden, millennials may have had it worse
By Matt Yan
Millennials and Generation Z prefer the home officePixabay
Earlier this year, The New York Times reported that Gen Zers (people born after 1997) have become the generation driving the most demand for rentals , replacing millennials (those born between 1981 and 1996), who are slowly making the transition to homeownership. You might think, given the post-pandemic housing crisis in the United States , that Zoomers would also be more burdened by rent than their predecessors were a decade ago. But a new report reveals that millennials actually had it worse .
The report, from Zillow and its New York City brand StreetEasy, analyzed data from the U.S. Census Bureau’s 2022 American Community Survey and found that nearly half of all American renting households were burdened by rental costs , “with Gen Z renters bearing the heaviest burden .”
But while 58.6% of Gen Z renters nationwide were rent burdened in 2022 , 60.2% of millennials experienced rent burden at the same age in 2012 . The report defined “rent burden” as spending more than 30% of income on housing expenses. It compared renters ages 18 to 25 in 2012 and 2022, excluding renters who were not working.
Generation Z is overwhelmed by paying rent Shutterstock - Shutterstock
While more recent data was not available, the comparison is notable because the U.S. housing shortage “has only gotten worse,” said Kenny Lee, a senior economist at Zillow and StreetEasy. As of 2022, there were about 5.2 million Gen Z households renting in the U.S. With a median annual gross rent of $16,980 and a median annual gross income of $42,000, they were spending about 40% of their income on rent .
“Low inventory really makes it difficult for local housing markets to find a balance between supply and demand,” Lee said. “That puts a bigger burden on young adults , who often have lower incomes because they’re still early in their careers.”
But while the pandemic put a wrench in Gen Z renters’ lives , it wasn’t as severe as the housing crash of 2008 and 2009. Lee said the share of young adults burdened by rent peaked in 2011 , at 62% . The following year, 60.2% of millennials were still spending more than 30% of their income on rent, but it gradually declined from there, to 55% in 2019. It rose again as surging demand after the pandemic, coupled with decades of insufficient supply, “ led to sharp rent increases across the country ,” the report said.
The proportion of young adults burdened by rent peaked in 2011
As always, the numbers vary by region , even within states. The share of renters experiencing rent burdens in Austin , Texas, fell 9.6% between 2012 and 2022 , while in Houston it rose 11.9% . And in California , some Gen Z renters were more rent-burdened in 2022 than millennials, with three cities topping the national list : San Diego , where 73.4% of Gen Z renters were rent-burdened, followed by Los Angeles (71.7%) and Sacramento (71%).
www.buysellba.com
