Gen Z in Dallas-Fort Worth spending more of their income on housing
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More than 60% of Gen Z renters in Dallas-Fort Worth spend at least 30% of their income on rent, according to U.S. Census Bureau data.
Why it matters: Steep prices and mortgage rates pose seemingly insurmountable hurdles to homeownership — and renting isn't necessarily an affordable alternative, reports Axios' Sami Sparber.
- Spending 30% of your income on rent is "the new normal," according to economists at Moody's Analytics.
Driving the news: One in three Gen Z-ers (34%) surveyed 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.
Meanwhile: Gen Z renters tend to live with roommates. The average age of a solo renter is now 50.
- Plus, more young Americans live at home. The number of people ages 25–34 living with family has jumped over 87% in the past two decades, per census data.
Reality check: Older Americans on fixed incomes are especially burdened by high housing costs, contributing to rising homelessness among Baby Boomers, The Wall Street Journal reports.
- In the Dallas area, 65% of renters older than 65 spend 30% or more of their income on housing, compared to 61% of Gen Z renters.
Yes, but: A higher percentage (42%) of Gen Z homeowners spend at least 30% of their income on housing costs, compared to 29% of people over 65 who do.
Of note: The vast majority of young renters are renting for lifestyle reasons, preferring the flexibility to move, RealPage chief economist Jay Parsons tells Axios.
- Many Gen Z renters have lower incomes but also lower bills beyond rent, which allows them to live in pricier locations, according to Parsons.
The bottom line: America's housing shortage has helped hike the cost of both buying and renting.