Most Portland Gen Z renters are cost-burdened
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Two-thirds of the Portland metro area's youngest renters spend 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 the Rose City is seeing record-level outmigration.
Yes, but: It's not just here.
- Spending 30% of your income on rent is "the new normal," according to economists at Moody's Analytics.
- Financial experts have long recommended individuals spend no more than 30% of their income on housing, but in recent years that percentage has become the floor — not the ceiling — of spending for many Americans.
Meanwhile, steep prices and mortgage rates pose seemingly insurmountable hurdles to homeownership for younger generations — and renting isn't necessarily an affordable alternative.
State of play: 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: It's one reason the typical first-time homebuyer last year was a record-high 36 years old, per the National Association of Realtors.
Zoom out: America's housing shortage has helped hike the cost of buying and renting.
Reality check: Renters over 65 in Portland are also facing a cost burden, part of a national trend contributing to rising homelessness among Baby Boomers, The Wall Street Journal reports.