Home News Half Of Millennials Can’t Afford To Rent A One-Bedroom Apartment In California’s Biggest Cities

Half Of Millennials Can’t Afford To Rent A One-Bedroom Apartment In California’s Biggest Cities

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California home to many cities, at least half of which millennial generation I can not afford to rent According to recent information, a one-bedroom apartment analysis from filterby.

Beyond the inflationary pressures of staple foods such as food When gasolineMedian rental prices will rise by 17.6% in 2021, with a total increase of 6.7% in the first seven months of 2022, according to the report. List of apartmentsRent increases have particularly affected millennials — defined as those between the ages of 24 and 39 in Filterbuy’s analysis — who have the highest percentage of renters compared to other generations.

“The combination of rising rents and stagnating wages has been a challenge for Americans of all kinds, but certain groups are more disadvantaged than others by the situation,” Filterby explained. “Even wealthy households are feeling the pressure, as rising real estate prices keep prospective buyers competing for space in the rental market. will be difficult to save.”

The renter wage gap (the difference between the average wage of a millennial renter and the average wage required to pay a one-bedroom rent without exceeding 30% of the wage) is in Los Angeles, Anaheim, and Long Beach It is the tallest of the metropolitan areas that comprise it. The median wage is $36,649, but the annual wage required for a one-bedroom apartment is $72,560, with a 49.5% wage gap among renters.

Since the median constitutes the center of the dataset, the data shows that more than half of millennials cannot afford a one-bedroom apartment in a Southern California city.

“For millennials in some parts of the country, fortunately rental units remain relatively affordable,” continued Filterbuy. “The interior of the United States tends to have the most affordable locations, where the typical millennial renter’s income exceeds what it would take to buy a median one-bedroom unit. It includes 13 states.By contrast, most of the states with large wage disparities for millennial renters are coastal states like California, where housing costs tend to be higher due to limited supply. is.”

Other Golden State cities, including San Diego, San Francisco, San Jose, and Riverside, rank among the most affordable cities for millennials, with wage gaps for renters of 39.9%, 37.4%, 36.1%, and 34.5%, respectively. . Similar income and rent disparities are found in Miami, Orlando, New York, Portland and Boston.

Single-family home prices have skyrocketed since the recession due to COVID and lockdowns. According to data from , the median U.S. home sales price for the first quarter of 2022 was $433,100. Department of Housing and Urban Developmentup 34% from $322,600 in Q2 2020.

Home prices are expected to rise another 4% in 2023, a relative slowdown from 17.8% in 2021 and 12.8% in 2022, according to forecasts by government-backed mortgage firm Freddie Mac.

“The Federal Reserve’s measures to help manage inflation have caused huge swings in mortgage rates and, in turn, the housing market,” said Sam Cater, chief economist at Freddie Mac. press release last month. “Although home price inflation has moderated, home prices remain high relative to homebuyers’ incomes. I have.”

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