By the time millennials turn 30, they will have paid $92,600 in rent, according to a new study by RentCafe, a nationwide listing service for rentals. It’s more than previous generations paid when they were between the ages of 22 and 30. RentCafe researchers studied how much millennials, Generation X members, and baby boomers spent on rent during that eight-year time period of their life by using U.S. Census Bureau statistics dating back to 1974.
Millennials have been hit the hardest by rising rents, and Generation Z—the generation following millennials—may have it worse, according to the analysis. Researchers estimate that by the time Generation Z reaches age 30, its members will have paid more than $102,000 in rent.
Millennials may earn more compared with previous generations (earning $206,600 in the eight-year period), but they’ve had to spend more on rent, the study found. Millennials spent 45 percent of their income on rent between the ages of 22 and 30—more than the 30 percent that most financial advisers recommend. The two previous generations were not able to keep their rental costs under 30 percent of their income either, but they did fare better than millennials: Baby boomers spent 36 percent of their income on rent between the ages of 22 and 30 and Generation X spent 41 percent.
