Oct 20, 2023 - Real Estate
Gen Z, boomers feel pressure of Boston's rental market
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Nearly two-thirds of the Boston metro area's youngest renters are spending at least 30% of their income on rent, according to the latest U.S. census data.
Why it matters: The data shows the financial pressure on the region's youngest workers and students at a time when Massachusetts is seeing the highest outmigration in three decades.
Yes, but: It's not just Massachusetts.
- Spending 30% of your income on rent is "the new normal," according to economists at Moody's Analytics.
The big picture: One in three Gen Z-ers (34%) surveyed nationally by Freddie Mac say owning a home feels impossible in their lifetime, up from 27% in 2019.
- Saving for a down payment is the biggest obstacle, they say. It's one reason the typical first-time homebuyer last year was a record-high 36-years-old, per the National Association of Realtors.
Reality check: Renters over 65 in Boston are also facing a high cost burden. 58% said they're spending more than 30% of their income on housing.
- This is part of a national trend contributing to rising homelessness among Baby Boomers, The Wall Street Journal reports.