Sorry in advance: I'm about to use the word millennial a whole bunch. Our good researchin' pals over at RentCafe set out to see if the often talked about phenomena of millennials spending a crazy amount of their income on rent is true.
By analyzing census data they found that we (hi, old millennial here) weren't just crying crocodile tears into our avocado toast (har har har)— millennials are paying significantly more in rent than boomers were at their age.
The study looked at census data from 1940 to determine how much money people spent on rent versus what they made, updated into 2017 numbers. According to the study, millennials (defined as folks between 22-40) have a rent burden of 45% of their income and pay a shocking $92,600 in rent by the time they turn 30. While millennials did out earn other generations during the period covered, they spent more of those earnings on rent.
There's a rent burden divide within the people grouped as millennials; younger millennials (22-29) are paying more than older millennials (30-40). Baby boomers paid the lowest total amount during their 2os, $66,900 and Gen Z is on track to outspend everybody by the time they hit 30 years old, with the potential to pay a whopping $102,100 in rent over the course of their 20s.
Head on over to RentCafe to see the full study.