- Income for millennial renters is enough to cover rents in at least 13 states, especially in the interior.
- But there’s a clear gap between how much it takes to buy a coveted one-bedroom beachfront subway and how much millennials make.
- Filterbuy calculates the percentage difference between the median income of millennial renters and the median wage required to rent a one-bedroom home without spending more than 30% of their income. determined the wage gap for millennial renters in specific metropolitan areas.
Rising housing costs and stagnant wage growth have put some of the most desirable cities in the United States out of reach for many millennial renters.
A recent analysis by Filterbuy found that since 2014, adjusted for inflation, wages have risen 6% and rents have risen 25%.
The analysis concluded that millennial renters’ income is sufficient to cover rents in at least 13 states, especially in the interior. But it turns out there’s a critical gap between how much it takes to buy his one-bedroom in the coveted seaside subway, and what a millennial earns.
Millennials (aged 26 to 41) make up the largest percentage of renters in the US at about 27%.
Filterbuy calculates the percentage difference between the median income of millennial renters and the median wage required to rent a one-bedroom home without spending more than 30% of their income. determined the wage gap for millennial renters in specific metropolitan areas.
The pay gap for millennial renters is highest in California’s metropolitan areas, including Los Angeles, Long Beach, and Anaheim. Here, the rent wage gap is 49.5%. The median wage for millennials is around $36,649, but the average annual wage for one bedroom is $72,560.
Millennial renters in the Miami-Fort Lauderdale-West Palm Beach, Florida metropolitan area are marginally better off than their LA Metro peers, with a 40% wage gap among renters. The average rent for a one-bedroom flat in the Florida subway is $1,308 per month. But the median annual wage for a millennial renter is $31,414, short of what’s needed unless he spends more than 30% of his wages on rent.
San Diego, California – Carlsbad. Orlando, FL – Kissimmee – Sanford. San Francisco-Oakland-Hayward, Calif., rounds out the five metropolitan areas with the widest wage gap among millennial renters, according to Filterbuy’s analysis.
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Another report by QuoteWizard released in August found that nearly one-fifth of Americans feared facing eviction within the next two months due to rising rents and fighting inflation. increase.
Earlier data from Freddie Mac shows that less than 40% of Americans have seen wage increases in the past year, and most Americans experience monthly rent increases.
Younger generations still see homeownership as a criterion for success, even as rents rise and costs for potential homebuyers rise. Affordability remains a central issue as sex declines and wage growth slows.
The median home price in July was over $412,000, up 7.7% from the same period last year. Interest rates on 30-year fixed mortgages also rose 2.5% year-over-year.