Guess how much Millennials and Gen Z will spend on rent before buying homes

The answer is at least 200K

TRD New York TRD WEEKEND EDITION /
May.May 27, 2018 11:30 AM

(Credit from left: Antoine K/Flickr, Pixabay)

With delayed home ownership come hefty rents.

The average millennial waits 12 years before buying their first house paying out a little more than $200,000 in rent in the process, according to an analysis from Zillow Group site HotPads. But, as previous reports note, the peak of the generation is beginning to buy homes, so, for landlords looking ahead, the next major wave of tenants will be members of Gen Z, people born between 1998 and 2016.

For the average Gen Z-er, they’ll wait about 11 years before buying into the housing market—they’re expected to become homeowners at a faster pace than their millennial predecessors, but their average rent expenses will come to an estimated grand total of nearly $230,000.

If Gen Z’s rental costs play out as predicted, they will set a historical record. By comparison, the average Baby Boomer paid $148,900 in rent before buying a home after about a decade. HotPads also expects that Gen Z will flock to rent in California-based cities.

The analysis adjusted for inflation and assumed people began paying rent at 20. [Business Insider]Erin Hudson


Related Articles

arrow_forward_ios
(iStock)

Déjà vu: New home sales hit 14-year high in August

Déjà vu: New home sales hit 14-year high in August
Housing and Urban Development secretary Ben Carson (Getty; iStock)

CoreLogic’s screening algorithm may have discriminated against renters: lawsuit

CoreLogic’s screening algorithm may have discriminated against renters: lawsuit
220 Central Park South with Louise Sunshine and Steve Roth (Google Maps, Getty)

Another 220 Central Park South condo trades for over $10K psf

Another 220 Central Park South condo trades for over $10K psf
The Real Deal's Amir Korangy, Fredrik Eklund and Louise Sunshine

Louise Sunshine and Fredrik Eklund hold court on selling luxury

Louise Sunshine and Fredrik Eklund hold court on selling luxury
Sheikh Sultan A. Al Qasimi and 15 Central Park West (Google Maps)

Tax lien triggers foreclosure filing on sheikh’s 15 CPW unit

Tax lien triggers foreclosure filing on sheikh’s 15 CPW unit
Photo illustration of the Williamsburg Bridge (Getty, iStock) 

As Manhattan struggles, Brooklyn’s sales market is “booming”

As Manhattan struggles, Brooklyn’s sales market is “booming”
HFZ Capital’s condo the XI has sold 38 of its 236 units (iStock)

HFZ’s Chelsea condo now effective, with 16% of units sold

HFZ’s Chelsea condo now effective, with 16% of units sold
Zillow's Rich Barton (iStock)

Zillow launches brokerage to boost iBuying

Zillow launches brokerage to boost iBuying
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...