Home News Cities where millennials can’t afford one-bedroom rentals

Cities where millennials can’t afford one-bedroom rentals

by admin
0 comment

The West Coast may not be the ideal place for millennials.

The Los Angeles-Long Beach-Anaheim metropolitan area in California has the largest gap between median millennial wages and the median annual income needed to rent a one-bedroom apartment. New Analytics by FilterbuyFor this analysis, millennials are defined as renters between the ages of 24 and 39.

In that metro, millennial renters earn an average income of $36,649, according to census data reported by Filterbuy. However, according to Filterbuy’s calculations, the median annual income he needs to pay for renting a one-bedroom without spending more than 30% of his income is $72,560.

The median is in the middle, meaning that about half of millennial renters make more than that amount and half make less. The same goes for apartments.

The West Coast dominates the list of locations with the widest gap between millennial renter income and the wage required to rent a one-bedroom. Five of the top eight locations are in California alone.

Below are the eight cities with the highest pay gaps for millennial renters, ranked from highest to lowest rent-to-income ratio.

Unfortunately, the overall gap appears to be widening as rent growth outpaces wage growth. “While median U.S. rent has increased by 25% since 2014, median hourly wages for U.S. employees have only increased by 6% over the same period,” the report states. increase.

But despite skyrocketing rents, homeownership appears to be out of reach for many millennials.

Nearly 25% of millennials believe they’ll be “forever renters,” according to preliminary data outlined in . Apartment List’s 2022 Millennial Homeownership Report.

Affordability plays an important role in that. Nearly 77% of millennials wanting to rent for the long term say it’s because they can’t afford to buy a home. Median home prices hit a record high of $413,800 in June, The National Real Estate Association reports. For comparison, the median home price was $363,100 in June 2021 and $294,400 in June 2020. According to the NAR.

Rising student loan debt is also a factor. Nearly 50% of him between the ages of 23 and her 31 say student loan debt is hindering his ability to save money to buy a home. August bank rate survey find.

However, younger generations are starting to see owning a home as less important to their financial success than older generations.

According to Apartment List’s 2022 survey, only about 34% of millennials consider home ownership very important, compared to 45% of baby boomers. Generational Attitudes Regarding Homeownership.

Sign up now: Get smart about money and your career with our weekly newsletter

Do not miss it: Goodbye San Francisco: Top 7 U.S. Cities Home Buyers Are Leaving

You may also like