Delaying the purchase of a house seems to be costing millennials a lot in rent.
A new report from apartment search website RentCafe analyzed Census data to estimate that millennials spend a median $92,600 on rent between the ages of 22 and 29. The report defined millennials as people born between 1977 and 1995 and studied only “single people paying the average monthly rent on their own.”
From MarketWatch’s analysis of the report:
And while millennials are earning more than previous generations, the share of income they must devote to rent is nonetheless higher. Their rent burden is 45%, versus 41% for Gen Xers and 36% for Baby Boomers.
According to RentCafe, younger millennials between the ages of 22 and 29 are projected to pay a median $97,400 on rent before turning 30.
Taken together with average student loan debt pushing $40,000, the high cost of living in many cities young people are flocking to, and the staggering expense of avocado toast, it’s clear millennials are strapped with some serious financial burdens.
