Gen Z to Outspend Millennials on Rent by 30, Study Finds

A recent study by Rent Cafe reveals that Generation Z in San Diego is projected to spend more on rent than millennials, with costs continuing to rise. The study compared the rental expenses of Gen Z and millennials from ages 22 to 29 across nearly 200 U.S. metro areas. Currently, Gen Zers earn 14% more than millennials did at the same age but also spend about 27% of their income on rent.

By age 30, Gen Z is expected to have spent approximately $145,000 on rent nationwide, compared to $127,000 for millennials. In San Diego, which has been named the least affordable metro area for 2023-2024 by U.S. News & World Report, Gen Z renters are anticipated to spend about $220,700 on rent before turning 30.

The study also highlights that in expensive cities like San Diego, San Jose, Los Angeles, and Seattle, high home ownership costs make renting the more feasible option. For instance, owning a home in San Diego could consume up to 47% of a Gen Zer’s income, whereas renting takes up about 33%.

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