By Matt Skinner
It’s no surprise that rent is more expensive for millennials than it was for baby boomers.
But soaring rent costs will hit Generation Z the hardest, those born between 1998 and 2016, according to new analysis from HotPads, a Zillow Group site.
Even when adjusted for inflation, today’s youngest adults will spend more on rent in their lifetime than their predecessors, according to the report. Members of Gen Z will spend an average of $226,000 on rent before ever owning a home.
That tops older generations, surpassing the $202,000 millennials will end up spending on rent, and the average $148,900 baby boomers spent on rent before becoming homeowners after adjusting for inflation.
But while Gen Z will spend more money on rent in their lifetime — paying a median of $1,710 a month — HotPads estimates the younger generation will be quicker to buy homes than millennials. Baby boomers spent an average of 10 years renting before buying, Gen Z will spend 11 years, and millennials will spend 12 years renting.
“While there are a lot of unknowns about how the American economy will evolve over the coming decades as Generation Z grows into adulthood, if historical trends hold, the long-term forecast right now suggests that Generation Z is likely to benefit from a stronger job market than millennials,” said HotPads economist Joshua Clark.
About Empire West Investments
Empire West is a real estate investment group that specializes in helping accredited and non-accredited investors get a higher return on investment with cash-flow apartment buildings.
Empire West’s of top-notch professionals, and their vast group of Deal Makers have traditionally obtained some of the best return on investment for their investors. Matt Skinner has lead his team in developing over $100 million in real estate, over 1,000 apartment buildings, and teaches real estate entrepreneurs how to succeed using his self-made tactics.