Millennials Are the Most Rent-Burdened Generation

A new study from RentCafé shows that Millennials spend more than $92,000 on rent, or 45 percent of their total income, by the time they are 30 years old. In 2017, rent prices rose about 3.1 percent, and up 19.6 percent overall since the end of 2012, per Trulia.

Student loan debt is a major factor prohibiting Millennials from buying a home, causing them to rent, and pay higher rent prices. Data from the National Association of Realtors show that Millennials are "less likely to believe they could even qualify for a mortgage," and HousingWire reports that about 50 percent of this cohort who have student loan debt say they are uncomfortable with the idea of having a mortgage.

During that same age span, from 22 to 30, Gen Xers paid an average $82,200 and Baby Boomers paid about $71,000 on total earned income of $202,100 and $195,700, respectively. While Baby Boomers paid just 36 percent of their income toward rent while in their 20s, Gen Xers paid 41 percent and Millennials now pay 45 percent of their monthly income toward rent. If this trend continues, Generation Z is expected to have to pay around $102,000 in rent during their 20s.

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