Our new study delves into historical housing costs and spending patterns in nearly 200 metro areas in the U.S. using IPUMS data. Specifically, we looked at Gen Z and Millennials and what they spend in terms of renting, as well as owning a home by the time they reach 30.
- Gen Zers in the U.S. will spend, on average, $145,000 on rent before turning 30, which is 14% more than what Millennials paid.
- In California, however, Gen Zers will encounter much higher rental expenses by age 30, reaching up to $300,000—specifically $221,754 in the Los Angeles metropolitan area.
- In Los Angeles, the cost of homeownership for the youngest generation in the housing market surpasses rental costs, climbing to $326,856 by age 30. This figure includes mortgages, taxes, and fees, but not the down payment.
- A silver lining exists in terms of income: Zoomer Angelenos are predicted to earn an average of $692,049 by age 30, which is $30,000 more than their predecessors made by this age.
- Los Angeles ranks second among the top 10 metros with the highest cost differences between owning and renting for Gen Z. In this city, the cost difference reaches $105,102 over the period from ages 21 to 30.
The metro areas where Gen Z faces the highest costs for both renting and owning nationwide are in California. The most expensive is San Jose, where renting can cost Gen Zers nearly $300,000 before turning 30 years old. Similarly, the cost of owning a home, excluding the down payment, can reach $466,000 for Zoomers within the same timespan.
Our full article contains national stats, as well as details on how Gen Zers compare to Millennials in terms of housing costs.
To read more click here.
