April 4th, 2018
Millennials on average pay $92,600 in total rent by the time they turn 30, according to a report by the real estate website RentCafe.
While this generation’s total median income is higher than previous generations – $206,600 in eight years – they spend about 45% of their pay on rent. Financial expects typically recommend spending just 30% on rent.
Millennials are generally defined as people born between the early 1980s and the mid-1990s.
Baby Boomers, on the other hand, earned $195,700 and spent $71,000 on rent – a rent burden of about 36%. Gen Xers brought home about $202,100 on average and dished out $82,200 on rent in their 20s.
RentCafe performed the analysis by looking at U.S. Census data on each generation’s total income and total rent paid for an 8-year period, adjusted 2017 prices.