Millennials will spend $92k on rent between 22 and 30, study finds
Mar 25, 2018, 3:57 PM
PHOENIX — Millennials will pay the most amount of money for rent compared to earlier generations, shelling out more than $92,000 in rent by the time they turn 30.
According to RentCafe, millennials were estimated to pay $92,600 in total rent costs between the ages of 22 and 30.
That number comes out to $11,575 per year and $964.58 per month.
While millennials, who were defined as those between 22 and 40, were estimated to have the highest total median income among other generations — earning about $206,600 in eight years — about 45 percent of that income would be spent on rent.
In comparison, Generation Xers — between the ages of 41 and 52 — spent about 41 percent of their income on rent and Baby Boomers, ages 53 to 71, spent about 36 percent.
The study also found that younger millennials, between the ages of 20 and 29, spend 47 percent of their income on rent, compared to older millennials, who spend about 44 percent of their income on rent.
If the trend continues, Generation Zers, or those under the age of 22, were estimated to pay around $102,000 on rent while in their 20s.
Millennials witness big financial challenges in part due to the heavy rent burden, but also due to the increasing student loan debt and more liberal spending habits.
The study was conducted by using income and rental data from the U.S. Census Bureau that dated back to 1974.
