Millennials and Generation Z have often been considered unlucky when it comes to issues surrounding housing and affordability. However, that changed during the COVID-19 pandemic, when more young people were able to purchase homes. Now, 69% of Millennial and Gen-Z homeowners say they’re better off than they were four years ago, compared with 52% of their peers who rent, according to a recent survey from housing market platform Redfin. This gap in financial well-being is larger than the one between other generations. For instance, just 42.6% of homeowners in Generation X say they're doing better than they were four years ago, compared with 38.8% of Gen Xers who rent.
While rent growth has stagnated over the last year, asking rents are still roughly 20% above pre-pandemic levels, and many renters are struggling to make ends meet as they also grapple with the elevated cost of other goods like groceries. Still, most young renters say they’re faring better than four years ago, and they’re much more likely than older generations to say so. That may be because they’re more likely than older renters to experience big pay bumps as they move up the ladder in their careers.
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