Rent is gobbling up young Utahns' income

More than half of Salt Lake's youngest renters spend at least 30% of their income on housing, according to the latest U.S. census data.

Why it matters: Steep prices and mortgage rates pose seemingly insurmountable hurdles to homeownership — and renting isn't necessarily an affordable alternative.

• Spending at least 30% of your income on rent is "the new normal," according to economists at Moody's Analytics. Conventional wisdom holds that 30% is the maximum share of income that should go to housing.

Driving the news: One in three Gen Z-ers (34%) surveyed last year 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.
• It takes more than 10 years on average to save up for a typical home in Utah, and you now need a household income of at least $140,000 to cover a median mortgage in Salt Lake City.

The big picture: Across the U.S., pinched young people are fanning out from big cities, returning to their childhood bedrooms or moving in with partners.

• In all of the 100 biggest U.S. metros, over one third of 15- to 24-year-old people who rent spend 30% or more of their income on housing, Axios' Simran Parwani reports.

Zoom in: That's true for all age groups in each of Utah's top five metro areas: Salt Lake, Provo-Orem, Ogden-Clearfield, Logan and St. George.

• More than 45% of 15- to 24-year-old renters are spending at least that in all five metros.

Yes, but: Many young renters are renting for lifestyle reasons, preferring the flexibility, RealPage chief economist Jay Parsons tells Axios.

• Gen Z renters have relatively low incomes — but also lower bills beyond rent, allowing them to live in pricier locations, according to Parsons.

Of note: More than half of renters over age 65 are spending over 30% of their income on rent — though most older Utahns are homeowners, not renters.

• Older Americans on fixed incomes are increasingly burdened by high housing costs, contributing to rising homelessness among baby boomers, the Wall Street Journal reports.