Many renters in Denver, both young and older, are spending too much of their income on rent, which inhibits them from saving for more important purchases, like a house.
The Denver Post reports that 48.6 percent of Baby Boomers in the Denver metro area are rent-burdened, meaning that they spend more than 30 percent of their income toward rent. Some 44 percent of Gen Xers and 43 percent of Millennials in the region are also rent-burdened.
Older generations typically have better incomes and greater financial security than younger ones. But, the theory is that many Boomers are downsizing, opting for a rental unit rather than a larger house. Plus, it may be a self-selecting sample: Older renters could be the people who have been forced to rent their entire lives because they could never afford a home.
People tend to rent when starting out and purchase properties as they age. Adobo, using data from the U.S. Census Bureau, found that 65.5 percent of millennials are renters, while 37.9 percent of Gen-X’ers are, and just 23.3 percent of baby boomers.