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

The answer is at least 200K

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 Article

The massive meeting held in a suburban casino outside of Utica came at a time when the real estate industry is asking itself some tough questions. (Credit: iStock)

Meet the 400 landlords that are taking rent laws into their own hands

Aggressive iBuyer Opendoor acquires title and escrow company

Here are 5 takeaways from TRD’s deep dive into Eklund-Gomes’ national expansion

Nashville broker posts oral sex selfie alongside kitchen and pool listing pics

From left: Rory Golod, Robert Reffkin and 1328 Fulton Street (Credit: Google Maps)

Compass is growing rapidly in UWS and Brooklyn

Elevated risk: Malfunction at NYCHA is putting public housing residents at greater risk of being injured in its elevators

How do brokers get listings from the Department of Justice?

Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)

Douglas Elliman is coming to Texas