(NewsNation) — Millions of Americans are struggling to keep up with rising rents, and a new report shows Gen Z renters are shouldering the heaviest load.
Nearly 60% of Gen Z renters (ages 18 to 25) spend more than 30% of their income on housing expenses, according to a Zillow and StreetEasy analysis of 2022 Census data.
That means roughly 3 in 5 Gen Z renters are considered rent-burdened.
In California cities like San Diego, Los Angeles and Sacramento, the share of rent-burdened Gen Z’ers is even higher, almost 75%.
Several Florida cities, including Orlando, Miami and Tampa, were also near the top of the list. In all three, nearly 70% of Gen Z renters were rent-burdened.
“For many Gen Z renters, choosing to live in a less expensive city may come at the expense of their career, which is why it’s so necessary we find ways to make living in these areas more affordable for young adults,” Zillow Rental Trends Expert Emily McDonald said in the report.
It’s not all bad news. In some cities, young renters are faring better than they were a decade ago. Austin, Texas, has seen the biggest decline, with the share of rent-burdened young adults falling to 59.6% in 2022, down from 69.2% a decade earlier.
The share of rent-burdened young adults has also dropped in Phoenix, Pittsburgh and St. Louis compared to a decade ago.
In fact, Gen Z renters are doing slightly better than millennials were at the same age, Zillow found. In 2012, 60.2% of millennials nationwide spent more than 30% of their income on rent — slightly higher than the 58.6% of Gen Zers in the same boat.
“The experience of struggling to pay rent on an entry-level salary is familiar to so many of us that it’s almost become normalized in our society,” StreetEasy Senior Economist Kenny Lee said. “But this is something that should not be normal.”
Overall, nearly half of all U.S. renter households in major metro areas are cost-burdened, spending more than 30% of their income on monthly rent.
While it’s true that American workers have seen their paychecks grow since the pandemic, in most cities, those gains haven’t kept up with rent prices.
Now, housing affordability is in the spotlight, with both presidential candidates touting their solutions on the campaign trail. Surveys suggest young voters are particularly concerned about the issue, which could ultimately decide the 2024 election.
Zillow’s findings are based on an analysis of the U.S. Census Bureau’s 2022 American Community Survey (ACS).
Top 10 U.S. cities with the highest share of rent-burdened Gen Zers, according to Zillow:
- San Diego, CA: 73.4%
- Los Angeles, CA: 71.7%
- Sacramento, CA: 71.0%
- Orlando, FL: 68.9%
- Miami, FL: 67.7%
- Tampa, FL: 67.1%
- Houston, TX: 66.2%
- New York City, NY: 65.6%
- San Antonio, TX: 65.5%
- Washington, D.C.: 64.4%